As you'll have gathered by now, it's important to be open-minded when it comes to currencies. For, despite the prospect of further monetary tightening in the US, the dollar has been unable to break out of the flat consolidation channel it has been in since early February. So, yes, we need to look for potential nuggets a little further away than under our noses, and once again, I like to look at currencies that are under the sign of plurality. But why? Looking at a single currency pair and drawing conclusions is like looking through a spyglass: your vision is fragmented, limited and therefore more or less strongly biased. Now you're looking at a dozen crosses pointing in the same direction. Bingo, you may have an idea.

In this game, CAD and NZD are out of the woods. The former has depreciated against the pound, the dollar, the Aussie and the euro. The latter has begun a comeback against these same currencies! In other words, the NZDCAD must have moved quite a bit in the last week. Just take a look at the following chart.

(Source: Bloomberg)

Last week's rise enabled the pair to retest its horizontal resistance around 0.8260, with a potential excess over 0.8330, whose breach should lend credence to the end of the correction begun at the end of last year. Validation of the bearish divergences, above 58% on the 21-day RSI, will confirm this new bullish momentum.