NZDCAD ShortSeems like NZDCAD is gearing up for a short based on this trend. If it breaks this line expect more bullish but I'm expecting it to drop during this US Session today.
Nzdcadtrend
NZD/CAD 1H Chart: Channel DownNZD/CAD 1H Chart: Channel Down
The New Zealand Dollar is losing value against its Canadian counterpart in a short-term tiny descending channel began to form after a 50-pip appreciation of the Loonie last Friday.
Until this point, the currency rate was confidently moving to the south, crossing all barriers on its way.
Most probably, the pair will continue the fall, as it has no other obstacles on its way in the next 118 basis points range.
On the other hand, there is need to remember that such narrow channel are very sensitive to fundamental events and might be broken even from the not very significant news.
NZDCAD's ascending monthly trendline got stuck on monthly resistIf you look at the monthly chart of the NZDCAD Forex pair, you will see that is has been on a uptrend since it's opening. However, you could also clearly see that it cannot penetrate above the levels of the monthly (major) resistance. With the continuous failure to break above, a possible trend reversal (on monthly level) may be taking place -- the bears are preparing for a major comeback!
