FxWirePro: NZD/CAD fails to hold break above 200-DMA, bias lower, stay short

• NZD/CAD fails to hold break at 200-DMA at 0.9131, slips below 5-DMA, bias lower.
   
• Recovery attempts lack traction, inverted hammer formation seen on daily charts.
   
• The pair has edged lower from fresh 5-month highs at 0.9174 and we see major upside only on breakout at 200-DMA.
   
• Technical studies have turned bearish. RSI is biased lower and Stochs are showing rollover from overbought levels.
   
• 20-DMA at 0.9018 is strong support, we see further weakness on break below.
   
• We see bearish invalidation only on breakout above 200-DMA.

Support levels - 0.9018 (20-DMA), 0.9001 (Jan 17 low), 0.8905 (23.6% Fib retrace of 0.9758 to 0.8641 fall)

Resistance levels - 0.9068 (38.2% Fib retrace of 0.9758 to 0.8641 fall), 0.9072 (5-DMA), 0.9131 (200-DMA)

Recommendation: Good to go short on rallies around 0.9050/60, SL: 0.91, TP: 0.9020/ 0.90/ 0.8975

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -62.5946 (Neutral), while Hourly CAD Spot Index was at 53.313 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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