NZDCAD Chart Technical Outlook in a corrective reversal, with bears focusing on 0.8400
The NZD/CAD has completed a 5-wave (Elliot Wave) bullish cycle and is going through a downside correction. Technical indicators show the pair gathering bearish momentum after rejection at 0.8500, with sellers aiming for the 0.8400 level.
Fundamentals are NZD-supportive. The Bank of Canada has already started cutting rates, while the RBNZ might keep borrowing costs at restrictive levels for the whole year.
I expect this to keep the corrective reaction limited. The 38.2% Fibonacci retracement, at 0.8350 might halt bears. Above 0.8515, the next targets are 0.8545 and 0.8590.
