NZD/CAD moves sideways in the short term and it seems poised to start an upwards movement. The price action has signaled that the downside could be over. Technically, we could get confirmation soon.
The New Zealand Dollar could take full control after the Canadian retail sales have disappointed earlier. The Retail Sales have dropped by 5.7% versus 5.1% expected, while the Core Retail Sales decreased by 7.2% more compared to the 4.4% drop expected.
NZD/CAD has found support on the descending pitchfork’s median line (ML). Its false breakdown with great separation below this dynamic support signaled a potential leg higher.
The descending pitchfork’s upside 50% line represents a dynamic resistance. Making a valid breakout through it could signal a potential further growth outside of the descending pitchfork’s body.
A new higher high could activate an important growth. The support stands at 0.8634 level.
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