June 29, 2021 14:03:25
The loonie is underperforming today along with its antipodean and commodity peers. However, oil prices are supportive and bond yields also should help underpin more gains in CAD as the global economic recovery continues.
NZD/CAD has been in a downtrend since late February and the attempt by bulls to push higher in mid-April met resistance just below 0.91. Since then, the pair has moved south with prices finding good support around the October 2020 low at 0.8627, though they did make a new cycle low at 0.8599 in mid-June.
After a mini bounce recently touched the long-term downward trendline, bears have been in charge and momentum is developing for another attempt at breaking the support around 0.8627/31.
With 0.87 capping prices in the near-term, you can place your stop just above here and target the recent lows around 0.86 with a strong softer close on the week pointing to more downside, the August 2020 lows at 0.8577 and much lower.
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