1 May 2015
Fade NZD/CAD rallies to 0.94 – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities suggest fading any NZD/CAD rallies towards 0.94 area, noting that they pair stands at a key are where weakness could be expected.
Key Quotes
“With April done and dusted, we can take a closer look at the longer-term (monthly) NZDCAD chart and highlight a couple of interesting (in our opinion, at least) developments.”
“Firstly, the NZD clearly stalled very close to the 2014 high, with the turn lower through April forming the third leg of a very well-defined “evening star” reversal on the monthly candle chart. That, in turn, sets up a potential 0.96/0.86 double top (implies downside risk to 0.76 on a break under 0.86).”
“We note also that the highs reached this year and last are close to what we have termed the “historic flameout” zone for the cross in the past couple of decades when tops and reversals from he 0.90+ levels have resulted (eventually) in weakness extending to the 0.60s. Look to fade gains to the 0.94 area.”
Key Quotes
“With April done and dusted, we can take a closer look at the longer-term (monthly) NZDCAD chart and highlight a couple of interesting (in our opinion, at least) developments.”
“Firstly, the NZD clearly stalled very close to the 2014 high, with the turn lower through April forming the third leg of a very well-defined “evening star” reversal on the monthly candle chart. That, in turn, sets up a potential 0.96/0.86 double top (implies downside risk to 0.76 on a break under 0.86).”
“We note also that the highs reached this year and last are close to what we have termed the “historic flameout” zone for the cross in the past couple of decades when tops and reversals from he 0.90+ levels have resulted (eventually) in weakness extending to the 0.60s. Look to fade gains to the 0.94 area.”