NZD/CAD can’t seem to crack fresh lows as it tests a technical support area.
Will this lead to a bounce higher for the pair?
We’re keeping a close eye on the 4-hour chart for clues!
NZD/CAD 4-hour Forex Chart by TradingView
The New Zealand dollar got a bit of love earlier today after the Reserve Bank of New Zealand (RBNZ) held rates steady, catching a few traders off guard who were looking for a cut.
Over in Canada, the Loonie is not getting much juice from rising oil prices, with traders more focused on U.S. tariff headlines and speculations that OPEC+ members might hike production quotas again.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the New Zealand and Canadian dollars, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
NZD/CAD kicked off the month at .8325 but has since dropped around 125 pips to hover near the .8200 psychological handle.
What makes this level worth watching is that it lines up with the S1 Pivot Point at .8185, which also sits just above a range support that has held strong since mid-April.
If we keep seeing green candles and price holds above .8220, the pair could make a push toward the .8240 mid-range area, or even revisit the .8320 highs.
On the flip side, if Kiwi stays under pressure and the pair slides toward the .8180 support, things could get dicey. A clean break below .8180 and the S2 Pivot at .8137 might open the door to deeper support levels like .8000.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
