Forex Market: NZD/CAD daily forecast

During yesterday’s trading session NZD/CAD traded within the range of 0.9420-0.9485 and closed at 0.9426.

At 8:46 GMT today NZD/CAD was losing 0.10% for the day to trade at 0.9431. The pair touched a daily low at 0.9416 at 8:03 GMT.

Fundamental view

Annualized number of housing starts in Canada probably increased to 177 000 in April from 156 823 in the previous month. Housing starts are considered as a key indicator, reflecting nation’s housing sector’ resilience. In case the number of housing starts rose more than expected, this would provide support to the loonie. Canada’s Mortgage and Housing Corporation will release the official numbers at 12:15 GMT.

In addition, selling prices of new homes in Canada probably rose 0.2% in March compared to a month ago, following a 0.2% increase in February. The New Housing Price Index is a key indicator, reflecting the health of nation’s housing market. In case prices surged more than anticipated, this would have a bullish effect on the loonie.

Statistics Canada will release the official data at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case NZD/CAD manages to breach the first resistance level at 0.9467, it will probably continue up to test 0.9509. In case the second key resistance is broken, the pair will probably attempt to advance to 0.9532.

If NZD/CAD manages to breach the first key support at 0.9402, it will probably continue to slide and test 0.9379. With this second key support broken, the movement to the downside will probably continue to 0.9337.