Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall toward the hourly key support level 0.8707 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. NZD/CAD is expected to continue to fall toward the support level 0.8707.

As can be seen from the daily NZD/CAD chart below – the pair earlier reversed down from the resistance area lying between the resistance 0.8850, upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from April. The proximity of this resistance area adds to the probability NZD/CAD will continue to fall toward the support level 0.8707.