New Zealand dollar sluggish against Canadian dollar
The New Zealand dollar tried to rally during the early hours on Monday but has struggled against the Canadian dollar. This makes quite a bit of sense considering that we are in such a massive downtrend, but ultimately another thing to pay attention to is that the oil markets are trying to break out. With that in mind, it makes sense that the Canadian dollar is going to continue to strengthen in general.
Beyond that, the New Zealand dollar is highly levered to the Asian situation which isn’t getting any better. There are a lot of concerns when it comes to Chinese banks and of course the US/China trade situation isn’t helping the scenario either. Even though there seems to be a little bit of a reprieve in the rhetoric, the reality is that we are miles away from some type of an agreement. With that, I think New Zealand and Australia will continue to suffer given enough time, and at this juncture it’s very likely that we will continue to see sellers come back into this market and reach towards the lows again.
The 50 day EMA is just above, and that of course will cause quite a bit of resistance. This is especially true near the 0.85 CAD level, and therefore I think that’s about as far as this market can go to the upside. To the downside it makes sense that we continue to reach towards the lows, and then perhaps even the 0.80 CAD level after that. All things being equal, looking at short-term charts in fading is probably the best way to go in a market that has been so heavily negative, and has repudiated every attempt to retaliate against weakness by the bullish traders. Ultimately, it’s not until we get a daily close above the 50 day EMA that you can consider being bullish.
Beyond that, the New Zealand dollar is highly levered to the Asian situation which isn’t getting any better. There are a lot of concerns when it comes to Chinese banks and of course the US/China trade situation isn’t helping the scenario either. Even though there seems to be a little bit of a reprieve in the rhetoric, the reality is that we are miles away from some type of an agreement. With that, I think New Zealand and Australia will continue to suffer given enough time, and at this juncture it’s very likely that we will continue to see sellers come back into this market and reach towards the lows again.
The 50 day EMA is just above, and that of course will cause quite a bit of resistance. This is especially true near the 0.85 CAD level, and therefore I think that’s about as far as this market can go to the upside. To the downside it makes sense that we continue to reach towards the lows, and then perhaps even the 0.80 CAD level after that. All things being equal, looking at short-term charts in fading is probably the best way to go in a market that has been so heavily negative, and has repudiated every attempt to retaliate against weakness by the bullish traders. Ultimately, it’s not until we get a daily close above the 50 day EMA that you can consider being bullish.