June 11, 2021 13:07:37
GBP/NZD potential upside looks good
GBP/NZD has been in an uptrend since the spike low in mid-December at 1.8523. Since then, prices have been rising at a steady pace with a series of abbreviated higher highs and higher lows. Resistance has proved its worth from October of last year with advances being halted both in March and May around 1.98. This week, with the RSI moving above 60 and bullish momentum picking up, the pair is once again hitting this resistance. The uptrend is being reinforced with a broadly-based alignment of trend oscillators across multiple timeframes, so the odds are on the pair moving through this resistance zone. Bulls will target the highs from August above 2.00 if the break through does occur, with a strong close this week further encouraging the buyers. Place stops below this week’s low at 1.9575.
NZD/CAD downtrend strong
With oil so strong and such a key driver of CAD, you might just want to get some long exposure in the loonie. NZD/CAD looks a decent candidate with sellers more active over the past week and momentum indicators starting to turn more bearish. The downtrend from the February highs is well established and we are now closing in on the recent lows around 0.8630. This support zone supported the pair back in October last year as well, but if we see a strong close on the week, bears can push onto last summer’s trough around 0.8576 before the Spring zone last year around 0.85. Put stops above the week’s high at 0.8748.
Although Moneta Markets aims to ensure that the information/material is accurate, it cannot be held responsible for any omissions/miscalculations or mistakes as it does not warrant the accuracy of such material. Any material and/or content provided herein is intended for educational purposes only and does not constitute investment advice on how clients should trade as it does not take into consideration your personal objectives, financial circumstances or needs. Please seek independent advice before making any trading decisions. Reliance on such material is solely at your own risk and Moneta Markets cannot be held responsible for any losses resulting directly or indirectly from such reliance. Any reference to figures/statistics or numbers refers to the group of companies of Moneta Markets. Please refer to the legeal documents should you require more information.
