NZD/CAD: Capitalizing on RBNZ Stability and BoC Dovishness

JoeChampion Updated   
Hello Traders,

In the coming week, we are closely monitoring NZD/CAD for a potential buying opportunity around the 0.84090 zone. NZD/CAD is currently trading in an uptrend and is undergoing a correction phase, bringing it closer to the key support and resistance area at 0.84090. This level has historically served as a significant pivot point for price action, making it an attractive entry point for long positions.

From a fundamental perspective, the Reserve Bank of New Zealand (RBNZ) is maintaining a steady stance and is not looking to cut rates anytime soon. In contrast, the Bank of Canada (BoC) seems to be on pace to cut rates, given the easing inflationary pressures in Canada. This divergence in monetary policy favors the NZD over the CAD, adding strength to our bullish outlook on NZD/CAD.

Additionally, the overall bullish sentiment in the stock market could further benefit NZD/CAD due to the positive correlation between risk-on environments and NZD strength. This confluence of technical and fundamental factors makes the 0.84090 zone a strategic area to look for buying opportunities in NZD/CAD.

Trade safely,

DXY is rejecting a decent resistance. can be good for NZDCAD for the negative correlation
Stocks are bullish, good for NZDCAD
BoC is more likely to cut rates, historically BoC always follow up with the Federal reserve in cutting rates.
Trade active
Trade active:
seems like we had a fakeout and NZDCAD is back above the trend now!
More soft data in the US with retail sales, Good for stocks and good for NZDCAD!

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