FxWirePro: NZD/CAD extends upside in 'Cup & Saucer' pattern, hit fresh 8-month highs at 0.9515

• NZD/CAD has hit fresh 8-month highs at 0.9515 before paring some gains to currently trade at 0.9481 levels.
   
• Canadian dollar weakens on the back of dovish BoC and falling crude oil prices which adds to upside pressure on the pair.
   
• The pair is extending gains in a 'Cup and Saucer' pattern and has currently paused upside at stiff resistance at 0.9520 (78.6% Fib and major trendline).
   
• Technical studies are bullish. RSI and Stochs are biased higher. We see +ve DMI dominance with ADX support.
   
• The pair has broken above weekly cloud and RSI nicely converging with price action.
   
• We see scope for further upside. Next major resistance lies at 0.9630 (88.6% Fib).
   
• 5-DMA at 0.9406 is immediate support. Break below could see dip till 0.9331 (61.8% Fib)

Support levels - 0.9406 (5-DMA), 0.9331 (61.8% Fib), 0.93

Resistance levels - 0.9520 (78.6% Fib and major trendline), 0.96, 0.9630 (88.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-breaks-above-weekly-cloud-eyes-major-trendline-resistance-at-09540-1184963) has hit TP1/2.

Recommendation: Good to go long on dips, SL: 0.93, TP: 0.96/ 0.9630/ 0.9650/ 0.9720

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 62.4703 (Neutral), while Hourly CAD Spot Index was at -90.0325 (Bearish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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