Technical Analysis of NZD/CAD for April 04, 2016
NZD/CAD was moving within the descending channel up until the 28th of February when price broke below the channel. Fibonacci applied to the channel breakout point shows support and resistance levels and price action around them.
Clearly the 38.2% Fibs support level - S2 (0.8840) has been broken opening doors for further decline. However, price formed a triple bottom near 0.8800 level and corrected upwards where it tested the 200 Moving Average and rejected the 61.8% Fibs resistance - R1 (0.9050). In addition, price broke below an upward trend line and currently NZD/CAD is trading below the 200 MA.
Everything is pointing to the bearish scenario where price is likely to go lower to test next Fib support. Consider selling NZD/CAD today either on small pullbacks or on the S1 (0.8945) breakout. The nearest target is the 23.6% Fibs support area that is S3 (0.8515). Stop loss should be just above R1 (0.9050)
Support: 0.8945, 0.8840, 0.8715
The material has been provided by InstaForex Company - www.instaforex.com