11 Jun 2015
NZD/CAD: downside risks might be met quickly – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, see the bearish tone for NZD/CAD extending, with the pair exhibiting a negative tone on all timeframes.
Key Quotes
“The clearly bearish technical story unfolding in NZDCAD over the past couple of months may be on the cusp of another, big development. Heavy losses for the NZD have extended this week, pushing the cross below multi-year trend support (now resistance at 0.8772) and testing below the 2014 low/double top neckline trigger at 0.8622 today (implies a measured move drop to 0.7590). We think the market will need to close below here on a weekly basis (at least) to confirm the break lower but the alignment of bearish trend momentum indicators across short, medium and longer-term studies suggests that a break below support is a “go with” move and that the downside target risks being met relatively quickly.“
Key Quotes
“The clearly bearish technical story unfolding in NZDCAD over the past couple of months may be on the cusp of another, big development. Heavy losses for the NZD have extended this week, pushing the cross below multi-year trend support (now resistance at 0.8772) and testing below the 2014 low/double top neckline trigger at 0.8622 today (implies a measured move drop to 0.7590). We think the market will need to close below here on a weekly basis (at least) to confirm the break lower but the alignment of bearish trend momentum indicators across short, medium and longer-term studies suggests that a break below support is a “go with” move and that the downside target risks being met relatively quickly.“