NZD/CAD developing the broader bearish outlook – TDS

FXStreet (Barcelona) - FX Strategists at TD Securities believe that the short-term picture for NZD/CAD is favouring the long-term bearish outlook, expecting a quick move lower towards 0.8850.

Key Quotes

“We laid out the longer-term bear case for NZDCAD last week (near the upper end of the historic range, big reversal signals forming on the longer-term charts) and the short-term picture is playing along nicely.”

“NZDCAD has crashed below the 200- day MA and retracement support in the low 0.91 area this week, prompting the quick additional losses we expected yester-day to the 0.90 area.”

“Losses may accumulate quickly towards 0.8850 retracement support now.”

“Major support from a long -term perspective remains 0.8620—a major (0.96) double top trigger which would, if broken, target a medium-term decline to 0.76.”

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