FxWirePro: NZD/CAD breaks below 20-DMA, on track to test major support at 0.8765, stay short

• NZD/CAD upside remains capped below 5-DMA, trades 0.26% lower on the day.
   
• Price action has breached 20-DMA and we see a bearish 5&20 DMA crossover.
   
• Momentum studies on the pair are bearish and support further downside.
   
• Stocks are sharply lower and RSI is at 39, biased lower. Price action below daily cloud and major moving averages.
   
• We see scope for test of major trendline support at 0.8765. Violation there could see further downside.
   
• On the flipside, we see bearish invalidation only above 20-DMA at 0.8937.

Support levels - 0.88, 0.8776 (Sept 14, 15 low), 0.8765 (major trendline)

Resistance levels - 0.8892 (5-DMA), 0.8937 (20-DMA), 0.8980 (23.6% Fib retrace of 0.9758 to 0.8740 fall)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-934026) has hit TP1/2/3.

Recommendation: Book partial profits at lows, lower trailing stop to 0.89, hold for 0.88/ 0.8776/ 0.8765

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