The pair NZD/CAD has been moving up for an extended period of time now, which makes it about 3 months of an uptrend. There is a possibility that bulls are now exhausted. They can give up their long positions which can lead to a correctional wave down.
The reason for that is the double Fibonacci based resistance that has been reached and seems rejected. The price bounced off the 161.8% and 76.4% retracement levels at the same time. Clearly, the resistance is strong and not penetrated. With the given conditions, I would expect a wave down to test one of the Fibonacci (18th October low - 15th December high) retracement levels, either 23.6% (0.9170) or 38.2% (0.9060.
Consider looking for sell opportunities sometime this week, while the price is near 0.9290, targeting one of the above mentioned Fibonacci levels.
Support: 0.9170, 0.9060
Resistance: 0.9350, 0.9290
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of NZD/CAD for December 15, 2015 . Thanks for your support.
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