© Dukascopy Bank SA
Having found a strong support near 0.86, the kiwi was able to stop the sell-off (since March) and start outperforming the Canadian Dollar. And while the bullish momentum will probably remain the main force during the next few months, locally the New Zealand Dollar appears to be weak.
Even though the four-hour and daily technical indicators are largely giving ‘buy' signals, the upside potential should be limited by the rising resistance line at 0.9080 reinforced by the monthly R1. While being capped here NZD/CAD is expected to breach the support at 0.8940 (Dec 23 low and 200-period SMA) and eventually fall down to the up-trend at 0.88.
© Dukascopy Bank SA