NZDCAD - CAUGHT IN THE MIDDLE, INTRA-RANGE TRADINGSymbol - NZDCAD
NZDCAD continues to exhibit strength within a broadly neutral trading range, supported in part by a corrective pullback in the US dollar. However, the sustainability of this momentum remains uncertain as market participants await key upcoming events, including the FOMC meeting and a speech by Federal Reserve Chair Jerome Powell.
The primary focus remains on the current consolidation zone, where the pair is exhibiting a localized upward bias. Notably, liquidity accumulation near the 0.8315 level appears to be exerting a magnetic effect on price action. The recent correction in the US dollar has provided short-term support to the New Zealand dollar, contributing to the pair's recent gains.
Nevertheless, upcoming fundamental developments pose significant event risk. Market expectations suggest a potentially hawkish tone from the Federal Reserve, which could prompt a reversal in the prevailing trend. Given the current neutral range, there is an elevated risk of a false breakout, followed by a corrective move.
Key Resistance Levels: 0.8315
Key Support Levels: 0.8264, 0.8235, 0.8225
The 0.8315 liquidity zone may act as a temporary barrier or potential reversal point. Future price direction will likely hinge on the tone and content of forthcoming US economic data and Fed communications. Should the Federal Reserve adopt a more aggressive policy stance or signal intent to do so, the US dollar could regain strength, potentially weakening the NZD in the process.
