There is more work to be done technically though.
Looking at the NZDCAD, it has been surging higher since October.
That run higher has seen the pair move up from a low from early October at 0.8320, to a high reached last week at 0.92559.
Looking at the daily chart above, the price high is approaching a trend line at 0.9275. The price has also moved above a swing area going back a few years in the 0.9188 to 0.9225 area.
We currently trade in that yellow area at 0.9215. If the price is to go lower, the price needs to get and stay below the 0.91884 level. That would tilt the bias a little more to the downside. Does it guarantee the top is in place? No, but it is a step in the bearish direction.
Drilling to the hourly chart, the technicals are also pointing to more work to do by the sellers.
Looking at the hourly chart below, the pair has three tops over the last 5 trading days at the 0.9250 to 0.9255 area. Today, the price made the third run higher and stalled ahead of the 0.9255 high from last Thursday. That – at the least – gives traders a ceiling to lean against on rallies (or if you want to sell). A move above, get out. Stay below, a chance for more downside is in play.
What else needs to be done on the hourly chart to signal a more bearish technical picture?
Today, the 100 hour MA (blue line in the chart below), was tested on two separate occasions. That MA comes in at 0.91967 currently (blue line). The bias would tilt more to the bearish side on a break below that MA. Absent that, the buyers are still more in control..
Another hurdle is the 200 hour MA (green line). Last week, the price fell below the 200 hour MA but could then not get below the 0.9100 natural support level. The 0.9100 is home to the 100 bar MA on the 4-hour chart now. It was also the high from November 21. That will be a key level if the other hurdles are broken.
First things first, in order to tilt the technical bias more to the downside,m the price needs to get and stay below the 100 and 200 hour MAs.. Then more targets can be eyed including the 0.9100 level.
PS the 0.9188 level from the daily chart is between the 100 and 200 hour MAs. So a break of those MAs would tilt the hourly and the daily a little more to the downside.