FxWirePro: NZD/CAD capped below 5-DMA at 0.8956, bias lower, stay short

• NZD/CAD extends weakness below 5-DMA, trades 0.11% lower in the Asian session.
   
• Technical studies on the pair are bearish and support further downside.
   
• Stocks are sharply lower and RSI biased lower and is below 50. Price action below daily cloud and major moving averages.
   
• The pair is currently holding support at 20-DMA at 0.8932, break below will accentuate weakness.
   
• Upside remains capped below major trendline resistance currently at 0.9020, bearish invalidation only on break above.

Support levels - 0.8923 (20-DMA), 0.8880 (Sept 27 low), 0.8750 (trendline)

Resistance levels - 0.8957 (5-DMA), 0.8980 (23.6% Fib retrace of 0.9758 to 0.8740 fall), 0.9020 (falling trendline)

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

Recommendation: Bias lower, stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -142.711 (Bearish), while Hourly CAD Spot Index was at 101.233 (Bullish) at 0410 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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