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NZDCAD: Bullish Scenario Hinges on 0.8500

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action. Any other charts can produce false signals.

The NZDCAD is approaching a confluence of resistance at 0.8500.

It’s the intersection of a key horizontal level and the descending channel top that extends from the year-to-date high in March.

This is a pattern I mentioned to members on October 2 when the pair was trading just above the channel floor at 0.8320.

Here’s what I wrote in the member’s area on October 2.

NZDCAD members-only forum post

You can see how buyers struggled to push the price higher throughout October.

However, November’s price action looks more constructive, at least so far.

Notice too how the NZDCAD is coming off a long-time support area at 0.8280 that dates back to August 2015.

NZDCAD weekly support area at 0.8280

For now, that 0.8280 support region is holding.

But don’t dismiss the lower highs from NZDCAD since November 2016.

See the weekly chart above.

Those lower highs may suggest weakness that could lead to an eventual break below range support at 0.8280.

That said, I would be surprised if NZDCAD broke down without another push higher first.

Just look at how aggressive the rallies were in late 2017/early 2018 as well as at the end of 2018.

Both of those bull moves ran for more than 800 pips.

We’ll see if NZDCAD buyers can do it again, but they are going to have to take out the confluence of resistance at 0.8500 first.

That’s an essential component of the bullish scenario.

Until the pair closes above 0.8500, the area is intact as resistance and, as such, will attract sellers.

A daily close above 0.8500 would expose 0.8640 and perhaps 0.8760.

Alternatively, bearish price action such as a pin bar or engulfing candle from 0.8500 resistance would keep sellers in control a while longer.

Want to watch the NZDCAD video I just released in the member’s area?

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NZDCAD confluence of resistance at 0.8500

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16 comments
Justin Bennett says

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Edward Ndakidemi says

Thanks Justin.. This has been on my reader, glad to see that am improving my Trading because of the analysis that you share. Cheers.

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    Justin Bennett says

    You’re welcome. That’s great to hear!

    Reply
    Justin Bennett says

    You’re welcome!

    Reply
Elvis says

Why is your price action different from mine, mine here is 0.64109,, but you’re saying 0.8500,,,are you not trading forex, does different time zone affect the market,, i thought it’s all the same

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    Justin Bennett says

    I’m trading Forex last I checked. You’re probably looking at NZDUSD. This post is about NZDCAD.

    Reply
Taro says

Bennett, I just wanted to tell how great your analysis is always. A couple of weeks ago you gave an analysis of EURUSD that was on forexfactory.com and look at the pair right now….just under 1.1000. Thank you

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    Justin Bennett says

    You’re very welcome!

    Reply
Erik says

Thank you very interesting, now i’m very curious how it will unwind.

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ali says

Thanks for the update sir justin.

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    Justin Bennett says

    Anytime, Ali.

    Reply
PRASHANT AGARWAL says

9280 – 8700 and 8900 – 8280 around was a perfect ab ab move .. am waiting for break above 8500 too or perhaps failure to do so …

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Thu says

cảm ơn những phân tích của ngài,tôi dường như đã cải thiện được giao dịch của mình. Mong sớm được làm thành viên của ngài.

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    Justin Bennett says

    English, please.

    Reply
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