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Brent Crude Oil And NZD/CAD: Lacking Strength

Published 02/04/2015, 06:18 AM
Updated 07/09/2023, 06:31 AM

After being alerted to prices being near a down trendline in NZDCAD, it also can be seen that Analytical Trader is signaling that the background is weak both in M30 and H1, which is a good indication. This is consistent with the fact that there has been a significant amount of supply in this downtrend since 20th January.

Chart 1

What is a cause of concern is that Brent Crude Oil (which is positively related to CAD) isn’t showing particularly much strength lately, despite the strong trend – there are strong supply signals, and more importantly, one with really high volume in this price level.

This relationship, between oil and the Canadian dollar (which exists because Canada is a big oil exporter) is stronger on the higher time-frames though, so it may not prevent further weakness on the NZDCAD.

Chart 2

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