Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for September came in at -NZ$2,108M monthly and at -NZ$9,090M annualized. Forex traders can compare this to the New Zealand Trade Balance for August, reported at NZ$2,306M monthly and -NZ$9,400M annualized. Exports for September came in at NZ$5.01B, and Imports at NZ$7.12B. Forex traders can compare this to Exports for August, reported at NZ$4.85B, and Imports, reported at NZ$7.15B.
The Canadian Industrial Product Price Index for September is predicted to decrease by 0.4% monthly, and the Canadian Raw Materials Price Index is expected to contract by 1.7% monthly. Forex traders can compare this to the Canadian Industrial Product Price Index for August, which dropped by 0.8% monthly, and to the Canadian Raw Materials Price Index, which plunged by 3.1% monthly.
The forecast for the NZD/CAD is cautiously bearish, with this currency pair trading at an intermediate resistance level. After a bearish crossover, the Tenkan-sen and the Kijun-sen have flatlined, with price action challenging the Tenkan-sen, suggesting more short-term volatility ahead. The Senkou Span A of the Ichimoku Kinko Hyo Cloud continues to move lower, while the Senkou Span B moves higher, and a bearish crossover is likely to happen over the following trading days, adding a bearish catalyst. Traders should also monitor the CCI after recording a lower low in extreme oversold territory followed by a breakout. This technical indicator trades below zero and has lost upside momentum, which could lead to more downside. Can bears regain control over the NZD/CAD and force price action into its horizontal support area and a fresh 2024 low? 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 0.8360 to 0.8395 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8370
- Take Profit Zone: 0.8130 – 0.8175
- Stop Loss Level: 0.8430
Should price action for the NZD/CAD break out above 0.8395, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8430
- Take Profit Zone: 0.8480 – 0.8515
- Stop Loss Level: 0.8395
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