NZD/CAD 1H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The bearish channel emerging in the hourly chart might be deceiving, being that the daily chart provides a completely different picture of what is going to happen. NZD/CAD has just arrived at the lower bound of the major bullish channel. Accordingly, while the hourly chart may suggest otherwise, it is in fact more likely that resistance at 0.91 will be broken, while support at 0.9065 will remain intact. The pair should then aim for 92 cents, where the daily R3 merges with the 200-hour SMA. At the same time, if the bears manage to push the price through 0.9065, this may well lead to a long-term sell-off down to 0.8585, namely the lowest level since last year's November.
© Dukascopy Bank SA
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