NZDCAD: Testing Support, Possible Rebound Ahead

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NZDCAD: Testing Support, Possible Rebound Ahead

NZDCAD continues to move inside a descending channel, where both resistance and support levels are clearly respected.

Currently, the price is testing the lower trendline (support zone), which has acted several times as a strong base for bullish rebounds.

If the price manages to hold above this area, a short-term bullish correction could start.

Key Targets:
0.8100
0.8150
0.8250

Fundamental analysis:
Earlier today RBNZ surprised markets with a 50-bp rate cut to 2.50%, citing weak growth and soft inflation pressures. The move sent the New Zealand dollar and swap rates lower and opened the door to more easing as the central bank seeks to revive demand and support the struggling economy.

Despite the NZD being weak during the morning, it seems the market has already priced in advance the move and the chances of it rising again are high.

You may find more details in the chart!
Thank you and Good Luck!