By Forex Signs, Inc.
NZDCAD is slowly gaining a bullish momentum as price is now ranging at least50 points up from last weeks low of 0.7575. As of this writing price is consolidating between immediate support level 0.7547 and immediate resistance level 0.7622 within the minor bullish channel. Though price is near the bottom line of the bullish channel, candlesticks formation shows an uptrend within the bullish channel. Bias in the mid term is buy if price breaks above the immediate resistance level testing 0.7650. If price continues to break above the top line of the bullish channel we may see a bullish reversal. If price breaks below immediate support and bottom line of bullish channel, a bearish trend may continue and will only make its current trend a bullish correction. MACD (12,26,9) for the mid term suggest a buy position, with the fast line pulling ahead of the signal line below 0.00 level.
Strong Retail Sales Helping US Recovery
For the upcoming American session strong Retail Sales report for November may help the US economy on its recovery as early reports suggest an increase of 0.6% gain for the last month following October’s 1.2% rise in purchases. This is the fifth consecutive month that retail sales climbed as Americans began their holiday shopping and shows consumers are now playing a big role in the US recovery. Producer price index is also expected to climb 0.6% for November, slightly higher than 0.4% increase in October.
Another important event is the release of the FOMC statement, wherein the Fed would announce their interest rates. Economists expect the Fed to keep its current rates, and would focus more on the accompanying statement. With this report comes some backlash, as economists will wait if the Fed would expand its quantitative easing program this might pull the greenback down again and might trigger a sell-off.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
