Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Manufacturing Sales for the first quarter increased 4.3% quarterly. Forex traders can compare this to New Zealand Manufacturing Sales for the fourth quarter, which increased 2.1% quarterly. New Zealand ANZ Business Confidence for June was reported at -0.4. Forex traders can compare this to New Zealand ANZ Business Confidence for May, reported at 1.8.
The Bank of Canada is predicted to keep interest rates unchanged at 0.25%. Forex traders can compare this to the previous Bank of Canada Interest Rate Decision, where interest rates were kept unchanged at 0.25%.
The forecast for the NZD/CAD remains bearish, with the descending Ichimoku Kinko Cloud maintaining selling pressure on this currency pair. Traders should expect an increase in volatility over the short term after the Kijun-sen entered a sideways trend. Confirming dominance of bears is the descending Tenkan-sen and the CCI, which bounced higher after challenging extreme oversold territory. The CCI has plenty of downside potential, but can bears take advantage of favorable conditions and force the NZD/CAD into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/CAD remain inside the or breakdown below the 0.8670 to 0.8740 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8710
- Take Profit Zone: 0.8340 – 0.8395
- Stop Loss Level: 0.8810
Should price action for the NZD/CAD breakout above 0.8740, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8810
- Take Profit Zone: 0.8925 – 0.8995
- Stop Loss Level: 0.8740
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
