The New Zealand Dollar has been trading in a four-week descending channel against its Canadian counterpart. After reaching the lower channel boundary circa 0.8751 (one-year low), the pair entered a minor consolidation period.
Subsequently, it failed to form a wave down right away, but remained near the upper channel boundary—a signal indicating that bulls might eventually take the upper hand. However, this level is reinforced by the monthly S1, the 100-, 55– and 200-hour SMAs and the weekly PP. Without bulls pushing aggressively, the Kiwi is unlikely to overcome this area.
This scenario is likewise supported by bearish technical indicators that favour the rate initiating a new wave down. This fall might be halted by the weekly S1 or the monthly S2 at 0.8724 and 0.8659, respectively, as the Kiwi is not expected to decline even further.
Subsequently, it failed to form a wave down right away, but remained near the upper channel boundary—a signal indicating that bulls might eventually take the upper hand. However, this level is reinforced by the monthly S1, the 100-, 55– and 200-hour SMAs and the weekly PP. Without bulls pushing aggressively, the Kiwi is unlikely to overcome this area.
This scenario is likewise supported by bearish technical indicators that favour the rate initiating a new wave down. This fall might be halted by the weekly S1 or the monthly S2 at 0.8724 and 0.8659, respectively, as the Kiwi is not expected to decline even further.
