Brent Crude Oil And NZD/CAD: Lacking Strength
Leonardo Barata | Feb 04, 2015 06:18AM ET
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.
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.
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