28 Apr 2015
NZD/CAD: Bears to take on the 200 DMA - TDS
FXStreet (Guatemala) - Analysts at TD Securities noted the technically bearish conditions surrounding the NZD/CAD cross.
Key Quotes:
"NZD/CAD’s rebound from support defined by the March low has extended further this morning but our core views here remain unchanged."
"The NZD is liable to struggle to improve in a major way as levels between 0.95-1.00 have been the historic flame-out point for this cross."
"That makes the March/April turn lower from the 0.96 area ominous even without the fact that the drop took on the form of a major monthly reversal signal (bearish “evening star” candle formation)."
"The 200-day MA and the lows in the upper 0.91 area might help underpin the NZD from a near-term perspective but price action and historic precedent suggests a major bear reversal has developed in the cross and that the longer-term direction for NZD/CAD is lower. Fade gains towards 0.94."
Key Quotes:
"NZD/CAD’s rebound from support defined by the March low has extended further this morning but our core views here remain unchanged."
"The NZD is liable to struggle to improve in a major way as levels between 0.95-1.00 have been the historic flame-out point for this cross."
"That makes the March/April turn lower from the 0.96 area ominous even without the fact that the drop took on the form of a major monthly reversal signal (bearish “evening star” candle formation)."
"The 200-day MA and the lows in the upper 0.91 area might help underpin the NZD from a near-term perspective but price action and historic precedent suggests a major bear reversal has developed in the cross and that the longer-term direction for NZD/CAD is lower. Fade gains towards 0.94."