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NZD/CAD On Cusp of Extending Losing Streak, RSI in Focus

NZD
  • NZD/CAD's March underperformance has the cross again testing key support at the 0.8195 200-dma - a level pierced, but not convincingly broken on Tuesday. Further weakness today would extend the losing streak in the cross, and would mark lower lows in 7 of the past 8 sessions.
  • A close at current or lower levels would expose key support and the bear trigger at the early Feb lows of 0.8152 and the 61.8% retracement for the Sept - Dec upleg at 0.8123.
  • Oil price outperformance has favoured downside in the cross so far this month, with NZD/USD's clearance of YTD lows adding to the recent weight.
  • An RSI-based strategy, the most profitable tech strategy of the past 12 months, continues to recommend a winning short position - but this will cover and go long if the indicator crosses above 30 from below - a condition that could be met if the sell-off accelerates.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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