Weekly Technical Outlook: NZD/CAD; Market Forecasts for May 18th – May 22th

• Stop loss 0.8796
• Entry level 0.8909
• First Target at 0.9066
• Next targets to test at 0.9104, 0.9142

 

Technical Analysis

NZD/CAD got some support above 0.8800 levels. A temporary bottom is formed at 0.8800 and stronger recovery could be seen with the bullish engulfing bar. Decisive break of 0.8962 confirms up trend resuming at 0.9066 key resistances. But with the week closing below the fib levels of 23.6, wait on the pair for some small pull back prior to resuming any upward bias. Otherwise, outlook will stay bullish on the pair and such rise is seen to occur with the bullish pattern on current momentum. The rise might extend through 38.2 levels which would possibly be the next area of resistance.

Economic

• PPI Output for the New Zealand
• Credit Card Spending
• Wholesale Sales for Canada
• Retail Sales along with CPI
• The Flip area where price has found support at 0.8800 levels.
• Bullish engulfing bar which shifted the movement still stronger.
• Price action closed below the fib 23.6 will look for small downside move prior to going long on the pair.
• Fib 38.2 should be the next area of resistance to hold strongly once the first target is hit.

Area of Interest

• The Flip area where price has found support at 0.8800 levels.
• Bullish engulfing bar which shifted the movement still stronger.
• Price action closed below the fib 23.6 will look for small downside move prior to going long on the pair.
• Fib 38.2 should be the next area of resistance to hold strongly once the first target is hit.

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