23 Dec 2014
NZD/CAD: Short term-6-12 month outlook - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that the outlook for NZD/CAD is bearish towards 0.8750.
Key Quotes:
“NZD/CAD’s March 2014 peak around 0.9650 was 2% below the high reached in 1997 and 3% above the previous multi-year high reached in 2004 so the sort of levels prevailing earlier this year are commensurate with what might be termed historic “flame out” points from the past for the NZD”.
“Indeed, the cross looks like it is shaping up to trade lower on balance—though we note that trend momentum indicators are not (yet) aligned in a way that would make this a high-conviction call from our perspective”.
“The minor rebound in the NZD through Q4 is taking the form of a bear flag, with negative implications for the NZD on a break below 0.8753 (measured move target of 0.7725 over the next 6-12 months)”.
“Trend support and the 2014 low converge at 0.8622 currently while short-term resistance at 0.9170 looks firm. Look for weakness below 0.8750 and for losses to pick up below 0.8620”.
Key Quotes:
“NZD/CAD’s March 2014 peak around 0.9650 was 2% below the high reached in 1997 and 3% above the previous multi-year high reached in 2004 so the sort of levels prevailing earlier this year are commensurate with what might be termed historic “flame out” points from the past for the NZD”.
“Indeed, the cross looks like it is shaping up to trade lower on balance—though we note that trend momentum indicators are not (yet) aligned in a way that would make this a high-conviction call from our perspective”.
“The minor rebound in the NZD through Q4 is taking the form of a bear flag, with negative implications for the NZD on a break below 0.8753 (measured move target of 0.7725 over the next 6-12 months)”.
“Trend support and the 2014 low converge at 0.8622 currently while short-term resistance at 0.9170 looks firm. Look for weakness below 0.8750 and for losses to pick up below 0.8620”.