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UnknownUnicorn33119711
Jun 9, 2023 6:58 AM

NZDCAD might reverse Long

New Zealand Dollar/Canadian DollarFXCM

Description

Technical Analysis: Right now it's in "buyer zone" in price range 80¢~90¢, and now it's still playing around strong buyer zone at 81¢ but historical data didn't showing this price as strong support (no significant reaction) and it showed 80¢ is better support aligned with demand (zone) on daily chart (D1) at this price level. MACD showing bullish divergence on H4 and also there's chart pattern of bullish flag.
NZDxxx pairs usually have negative correlation (better with AUDNZD) with AUDxxx pair, if looking into inter-pair analysis with AUDNZD, the pair AUDNZD is right now exactly at "upper zone" price range NZD1.10. Previous structure of this pair (AUDNZD) had broke the minor swing high around price NZD0.09302 which consider to going upward mean there's "buyer" in market and now I expect it will pullback/correction (downward) from price NZD1.10 to at least NZD1.08 (200 pips). If NZD has positive fundamental data in next week so I consider to placing buy limit at 80¢ with stop loss at 79.5¢ (50 pips), target 84¢ (400 pips), RRR 1:8.
Fundamental Analysis: There's less economic news for New Zealand in forex market. No significant impact on this pair (it's a minor pair) so I consider to look into the opposite currency (CAD) to expect the impact. Next week there's only 1 high impact news for NZD; GDP. I hope that could positive data to support it and also take CAD's fundamental into consideration.
What do you guys think?
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