The NZDCAD continues to hover about new support at 0.8500.
I wrote about this area on November 13 as a key area that buyers would need to clear in order to send the pair higher.
That breakout occurred on the 19th.
However, the bearish engulfing candle on the 21st presents a challenge.
A bearish pattern like that often signals an influx of selling pressure.
But selling NZDCAD now isn’t appealing to me while the pair remains above new support at 0.8500.
Furthermore, the descending channel top near 0.8450 could also attract buyers.
This indecision is something we’ve also seen in the pair’s counterpart, the AUDCAD.
I discussed the possible bullish and bearish scenarios for the AUDCAD in Saturday’s forecast video.
The NZDCAD finds itself in a similar situation.
Buyers need to hold the pair above new support to send prices higher into the next resistance level at 0.8640.
On the other hand, a close below 0.8500 and especially 0.8450 would be a bearish sign for the pair.
Given the indecision, I favor waiting for either a bullish signal from new support or a daily close below the support levels mentioned above.