Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand CPI for the third quarter increased 2.2% quarterly and 4.9% annualized. Economists predicted an increase of 1.4% and 4.1%. Forex traders can compare this to the New Zealand CPI for the second quarter, which increased 1.3% quarterly and 3.3% annualized. New Zealand RBNZ Offshore Holdings for September were reported at 48.60%. Forex traders can compare this to New Zealand RBNZ Offshore Holdings for August, reported at 47.7%.
Canadian Housing Starts for September are predicted at 255.0K. Forex traders can compare this to Canadian Housing Starts for August, which were reported at 260.2K.
The outlook for the NZD/CAD turned bearish as the advance off support levels is losing steam. Adding to downside pressures is the Ichimoku Kinko Hyo Cloud following the bearish crossover of the Senkou Span A below the Senkou Span B. The Tenkan-sen and the Kijun-sen turned sideways, but the CCI currently continues to approach extreme overbought territory. Traders should wait for it to reach 100 and retrace before entering their sell orders. Can bears regain control over the NZD/CAD and pressure this currency pair 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 0.8735 to 0.8790 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8755
- Take Profit Zone: 0.8530 – 0.8575
- Stop Loss Level: 0.8825
Should price action for the NZD/CAD breakout above 0.8790, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8825
- Take Profit Zone: 0.8900 – 0.8920
- Stop Loss Level: 0.8790
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
