NZDCAD Rejects Resistance: Downtrend Set to Continue?

2024年9月13日

Hey Traders,

NZDCAD is showing signs of rejecting a key resistance level at 0.84100, with the price currently pulling back within a descending channel. This setup could indicate the continuation of the downtrend.

Current Market Conditions:

Descending Channel: The pair is moving within a well-defined descending channel, suggesting a continuation of the bearish trend.
Resistance Rejection: NZDCAD has tested and rejected the resistance level at 0.84100, which aligns with the upper boundary of the channel.
Bearish Setup: The rejection at this resistance and the downward momentum within the channel point to further downside potential.

Fundamental Analysis/Outlook:
The New Zealand dollar faces headwinds from weaker domestic economic data and global risk aversion, while the Canadian dollar remains supported by stable oil prices. This divergence could continue to pressure NZDCAD lower.

Targets:

TP1: 0.83717
TP2: 0.83318
TP3: 0.82900

Risk Management:
Stop-Loss: Place a stop-loss above the resistance at 0.84100 to protect against a breakout above the channel.

Conclusion:
NZDCAD appears poised for further downside as it continues to respect the descending channel. Watch for a break below the support levels to confirm the continuation of the bearish trend.

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Trading Insight: "In trading, it's not about predicting the future but about reacting to the present."