NZD/CAD may be gearing up to extend its broader uptrend!
With this week’s catalysts lining up, Kiwi bulls may have another shot at pushing the pair higher.
Let’s take a closer look at NZD/CAD’s 4-hour time frame:
NZD/CAD: 4-hour
NZD/CAD 4-hour Forex Chart Faster With TradingView
The New Zealand dollar has kept a firmer tone since the RBNZ’s hawkish surprise a few weeks back, with improved risk sentiment lately giving NZD another boost.
CAD, meanwhile, is headed for a key test as the Bank of Canada announces its rate decision on Wednesday. A less hawkish hold from Governor Macklem could put more pressure on Loonie after Canada’s Q1 GDP contraction and softer-than-expected core inflation.
NZD/CAD has been climbing inside an ascending channel pattern since its April lows below .7950, with the 100 and 200 SMAs tracking below price to keep the broader uptrend intact.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
More recently, NZD/CAD topped out near .8250, then dropped sharply through the Pivot Point at .8134 before buyers showed up around the lower channel near .8050. Price is now hovering near .8104.
Watch for bullish candlesticks and a sustained push back above the Pivot Point zone, as these could signal that buyers are retaking control and open the door toward R1 at .8196, if not the .8250 area near R2 (.8318).
On the flip side, if the bears overwhelm the channel support, bearish candles pushing below S1 at .8011 could bring the .7949 area near S2 into play.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
This NZD/CAD setup is framed around the upcoming Bank of Canada rate decision, so understanding what drives the Loonie is key context for reading the trade thesis. Premium members can read our lesson:
📖 Canada
Reading this helps you understand Bank of Canada policy behavior, how Canada’s GDP and inflation data influence CAD, and why the BoC’s tone at Wednesday’s decision could be the determining factor in NZD/CAD’s next move.
And if you’re not a Premium subscriber yet, now might be a good time to sign up.
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