NZDCAD regained positive momentum as the pair surpassed its 50- and 200-day simple moving average (SMA) in the past couple of sessions. Moreover, the 50-day SMA has just crossed above the 200-day SMA, reviving hopes of a sustained bullish move, should this crossover be maintained over the next trading sessions.
The cautiously optimistic outlook and the recent price appreciation are also supported by the short-term momentum indicators as the RSI is increasing above its 50 neutral mark, while the MACD is found above zero and its red signal line.
Should the price break above its 0.8910 level, the bulls may then target the 0.8961 region. Surpassing this barrier could pave the way towards testing the strong 0.9040 resistance. Any advances beyond that crucial level could strengthen the positive outlook for the pair, sending the price towards its 0.9148 resistance.
On the flip side, if the price breaks below the congested region that includes the 0.8841 support and the 50- and 200-day SMA currently at 0.8855 and 0.8850 respectively, this could turn the cards around for the pair, sending the bears to test the 0.8800 support. A further descending movement from this level could intensify selling pressures, sending the pair to test its 0.8733 level.
In brief, the overall outlook for the NZDCAD is cautiously positive. However, this might change if the price breaks below the congested region, including the 50- and 200-day SMAs, while surpassing the strong 0.9040 level could strengthen the pair’s positive momentum.
