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NZD is having trouble extending its gains against CAD after a robust showing up to now this week.

Is NZD/CAD able to extend its longer-term downtrend? Or are the bulls just taking a breather?

NZD/CAD 4-hour Forex Chart by TradingView

Talks of rate of interest cuts from the Fed got risk takers excited this week, with commodity-related currencies like AUD and NZD trading in uptrends for a lot of the week.

The oil-related Loonie, which already saw regular gains in late March, weakened a bit despite rising crude oil prices.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your fundie homework on the Recent Zealand and Canadian dollars, then it’s time to envision out the economic calendar and stay updated on every day fundamental news!

NZD’s strength helped boost NZD/CAD from its S1 (.8060) April lows all of the approach to the R1 (.8160) Pivot Point line.

As you may see, NZD/CAD’s upswing stopped near a previous support zone and the 100 SMA within the 4-hour timeframe.

If the consolidation results in a downside breakout, then NZD/CAD may extend its February downtrend and head for the Pivot Point (.8120) line if not its .8060 previous lows.

But when NZD bulls still have some hustle of their muscle, then NZD/CAD could see one other upswing. This time, bullish pressure may take the pair to the .8200 psychological handle or the R2 (.8220) Pivot Point zone near the 200 SMA.

What do you think that? Which way will NZD/CAD go in the following trading sessions?