Quick look: NZD/CAD shows further bearish potential

NZD/CAD daily chart

nzdcad.png

RBNZ surprised with the rate cut and the NZD took a hit across the board. Among all the NZD crosses, its pair with CAD looks poised for further sell-off if oil maintains its bullisht tone.

Trading strategy is pretty simple– watch for the daily closing today. Its below the triangle support, short the pair for a target of 0.8576. However, those would be intraday trades; getting few pips each day rather than carrying overnight positions because you never know what would happen in oil markets. When you go to bed at night, make sure to take profit on shorts or book losses, whatever the case may be.

On the other hand,  if you see tomorrow’s candle bouncing off the channel support go long for a target of 0.8900 – 0.9009.

 

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