Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
NZD/CAD: trend collision
Information is not investment advice
The NZD has been frequently appearing in the “Best performers” list lately. That is because New Zealand, similar to Australia, managed the virus pretty well and is lucky to be among the first countries to get out of the hibernation state together with China.
Although the NZD/CAD, particularly, presents a volatile picture, still we see that the NZD keeps fighting and has been doing that pretty well. The short-term picture is oriented sideways and at the very least gives the same hope for bulls as the bears may take. Note that the Moving Averages have started to reconfigure themselves in ascending order during the last week, which indicates an intention to rise. Fair enough, what is the long-term layout then?
One-year horizon gives a different scenario. Generally, the NZD/CAD is in decline. The volatility is there, but the downturn is pretty consistent, although not without intermittent upswings. The very last episode, apart from a highly volatile earthquake-like behavior, gives a bullish impression. That trend collides with the larger downward trajectory almost exactly where the currency trades now. That suggests that we will see, first of all, further volatility as the two trends will be fighting to impose one of another. Secondly, we are still likely to have NZD/CAD keep losing value in the long-term as the fundamentals suggest. However, the short-term picture is probably going to be sideways, as it appears from the H1 chart.
Resistance: 0.8510; 0.8550
Support: 0.8430; 0.8390
Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.
Suddenly, the US Dollar Index fell 6.70% over the last two weeks, marking the biggest decrease in the currency since 2020.
The G20 summit took place in Bali, Indonesia, on November 2022…