• NZDCAD broke support zone
• Likely to fall to support level 0.8700
NZDCAD currency pair under the bearish pressure after the earlier breakout of the the support zone lying between the key support level 0.8800 (which stopped the previous waves (iv) and (a)) and the 50% Fibonacci correction of the previous sharp upward impulse wave 1. The breakout of this support zone accelerated the active short-term ABC correction 2.
Given the strengthening bearish new Zealand sentiment as seen across the currency markets today, NZDCAD currency pair can be expected to fall further toward the next support level 0.8700 (target price for the completion of the active ABC correction 2).