Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Forex market will experience light trading volumes today as the US market is closed for the Thanksgiving holiday, which will extend into tomorrow’s limited trading session. Many US-based traders will take a long holiday, and the reduced trading volumes could increase volatility for the rest of the week.
The New Zealand NBNZ Own Activity for November came in at 48.0%, and ANZ Business Confidence came in at 64.9. Forex traders can compare this to the New Zealand NBNZ Own Activity for October, which clocked in at 45.9%, and to ANZ Business Confidence, reported at 65.7.
The Canadian Current Account Balance for the third quarter is predicted at -$8.6B. Forex traders can compare this to the Canadian Current Account Balance for the second quarter, reported at -$8.50B.
The forecast for the NZD/CAD turned bullish after this currency pair broke out from its horizontal support area. Price action trades above its flat Kijun-sen and flat Tenkan-sen, with more short-term volatility ahead. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are flat, suggesting the lack of medium-term upside momentum, and limiting the upside potential. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero. This technical indicator has more upside potential to lead price action higher. Can bulls maintain control over the NZD/CAD and push this currency pair into its horizontal resistance 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 break out above the 0.8225 to 0.8265 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8250
- Take Profit Zone: 0.8370 – 0.8400
- Stop Loss Level: 0.8195
Should price action for the NZD/CAD break down below 0.8225, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8195
- Take Profit Zone: 0.8100 – 0.8135
- Stop Loss Level: 0.8225
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
