FxWirePro: NZD/CAD hits new 3-year lows at 0.8425, break below 88.6% Fib to see further weakness

NZD/CAD chart on Trading View used for analysis

• Kiwi tracks sharp losses in its Australian counterpart, extends weakness across the board.
   
• Investors await Bi-weekly New Zealand GDT auction. Declines in the GDT price index could drag the kiwi lower.
   
• Focus also on FOMC Chairman Powell speech due later today for further direction. Powell is expected touch on employment and inflation.
   
• Technical bias is bearish. Price action below major EMAs and upside capped at 55-EMA and cloud.
   
• RSI and Stochs are sharply lower and MACD shows bearish crossover on signal line. We see -ve DMI crossover on +ve DMI which adds to the bearish crossover.
   
• Technicals on weekly charts are also strongly bearish. Price is testing 88.6% Fib at 0.8427. Break below to see further weakness.

Support levels - 0.8427 (88.6% Fib), 0.8234 (Aug 2015 low)
Resistance levels - 0.8506 (5-DMA), 0.8570 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1436374) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further weakness below 88.6% Fib.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -32.9275 (Neutral), while Hourly CAD Spot Index was at 27.0931 (Neutral) at 0630 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.