NZD/CAD Currency Pair Forecast

Evaluation of NZD/CAD currency pair downgraded after the last trading session.
(Updated on May 24, 2024)

NZDCAD Signals & Forecast

The NZD/CAD currency pair holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $0.83 and $0.82. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, May 23, 2024, and so far it has fallen -0.0048%. Further fall is indicated until a new bottom pivot has been found. NZD/CAD gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The very low volume increases the risk and reduces the other technical signals issued. The currency pair had a Golden Star Signal on Thursday, May 02, 2024 for the short-term and also have Golden Star Signal for the medium-term dated Monday, February 12, 2024.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the currency pair in question.

Support, Risk & Stop-loss for NZD/CAD currency pair

NZD/CAD finds support from accumulated volume at $0.83 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved $0.0042 between high and low, or 0.504%. For the last week the currency pair has had daily average volatility of 0.155%.

The NZD/CAD currency pair is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some currency pairs may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the currency pair manages to break the trend before that occurs.

Our recommended stop-loss: $0.82 (-2.48%) (This currency pair has low daily movements and this gives low risk. The RSI14 is 76 and this increases the risk substantially. There is a sell signal from a pivot top found 43 days ago.)

Trading Expectations (NZDCAD) For The Upcoming Trading Day Of Tuesday 28th

For the upcoming trading day on Tuesday, 28th we expect NZD/CAD to open at $0.84, and during the day (based on 14 day Average True Range), to move between -$10,064,009.95 and $10,064,011.63, which gives a possible trading interval of +/-$10,064,010.79 (+/-1 203 469 152.80%) up or down from last closing price. If NZD/CAD takes out the full calculated possible swing range there will be an estimated 2 406 938 305.61% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $0.84 (0.00%) than the support at $0.83 (0.51%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is NZD/CAD currency pair A Buy?

NZD/CAD holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this currency pair since the last evaluation from a Buy to a Hold/Accumulate candidate.

Current score: -0.372 Hold/Accumulate Downgraded

Predicted Opening Price for NZD/CAD of Tuesday, May 28, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.