After a consistent downtrend, NZD/CAD set a low near 0.88. The pair found itself in a correctional phase with a sharp rise from 0.8792 to 0.9031. The most recent price action is nothing else than a range trading that has been going on for 3 days now, keeping in mind that this is the 1H chart.
While the correction took place, NZD/CAD broke above the descending channel and closed higher 23.4% (R2 – 0.9006) Fibonacci resistance level based on the channel breakout point. After the pair had come back to the S1 (point of breakout), it rejected it on three occasions. Additionally, the MACD bullish divergence supports the idea of further correction upwards.
The growth is quite probable unless the pair breaks below already established support S1 (0.8932). Therefore, while the price is above S1, consider buying targeting 0% Fibonacci area, which is R3 (0.9071).
Support: 0.8932, 0.8899, 0.8859, 0.8792
Resistance: 0.8965, 0.9006, 0.9071
The material has been provided by InstaForex Company - www.instaforex.com