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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.
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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.