NZDCAD Stalls At A Technical Juncture Ahead of CAD CPI
The past few weeks has seen NZD have the upper hand over its commodity FX rival, CAD. Yet it could be approaching crunch time as yesterday’s high almost perfectly bounced of a 2-year trendline (just in time of Canada’s data dump today).
Share this:
View related analysis: CAD/CHF - Deja Vous, Right On Cue
The past few weeks has seen NZD have the upper hand over its commodity FX rival, CAD. Yet it could be approaching crunch time as yesterday’s high almost perfectly bounced of a 2-year trendline (just in time of Canada’s data dump today).
The weekly chart shows resistance has been found at pivotal level. If the November 2016 trendline holds and bearish momentum is to return, it could see a resumption of its 2-year trend over the coming weeks. However, the daily chart has its merits for the bull-camp.
The rally from 0.8320 appears impulsive, and the retracement from 0.9572 respected the 38.2% Fibonacci retracement, prior to re-testing the December highs. Moreover, the 8, 21 and 50 eMA’s are fanning out to show an increase in momentum, and recent retracements have found dynamic support with the shorter averages.
A bearish pinbar shows a hesitancy to break higher, yet perhaps this could be expected given the importance of the trendline and the host of Canadian data released today. But, if the daily trend is to hold, a break above 0.9277 invalidates the bearish trendline and opens-up a run for 0.9581.
Keep in mind a host of Canadian data is released later today, and the BOC remain data dependant. Although BOC and RBNZ have their rates set at 1.75%, RBNZ is the more neutral bank of the two, meaning a strong or weak data set for Canada today could bring forward or push back expectations for their next hike, will dictate CAD’s direction. Therefor Canada’s data today could dictate which side of the trendline we close the week on, whilst could dictate sentiment as we head into next week.
Open an account in minutes
Experience award-winning platforms with fast and secure execution.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/CAD Outlook: Loonie left behind as US CPI looms
USD/CAD's sharp rebound has coincided with widening US–Canada interest rate differentials. With US CPI approaching and bullish momentum building, another breakout may be on the cards.
Japanese Yen Outlook: EUR/JPY and GBP/JPY Outbid USD/JPY
The Japanese yen starts the week mixed, with EUR/JPY and GBP/JPY showing bullish potential while USD/JPY remains stuck in a rut.
USD Majors, Gold, Bitcoin, Equity Indices Weekly Technical Outlook 11 9 2026
Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities, and equity indices charts this week.
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.