Canadian Dollar Pairs Reach Key Resistance Areas

• 15 Mar 2018

NZD/CAD

The NZD/CAD pair has broken back below the upper Bollinger band and has begun what appears to be a pullback in price action. A bearish candlestick coupled with a momentum reversal on RSI may signal the pair is entering into a bearish retracement. However, the longer term trend indicates that bullish sentiment is strong as the pair has entered into a bullish flag continuation pattern. MACD remains strongly bullish and moving averages have a clear upward trajectory.

AUD/CAD

The Canadian Dollar has begun to strengthen against the Australian Dollar, which has dominated price action for the last couple of weeks of trading. A doji candle in yesterday’s trading highlighted relative indecision as the pair tested overbought levels. RSI has begun a momentum reversal. Supply and demand fundamentals related to commodity prices are likely to impact the pair in the near-term.

EUR/GBP

The EUR/GBP pair has broken the 20- period EMA to the downside. MACD has begun a momentum reversal supporting bearish sentiment. Further, RSI has a downward trajectory confirming a selling bias.

GOLD

Gold appears to be entering into a longer-term downtrend. A descending triangle pattern with progressively lower highs signals a potential breakout to the downside. At the same time, price action has crossed below the 50- period SMA which further confirms bearish sentiment. MACD has crossed the zero line to the downside.