FxWirePro: NZD/CAD holds support at 110-EMA, dip till 200-DMA at 0.8871 likely on break below

NZD/CAD chart on Trading View used for analysis

• NZD/CAD extends sideways grind along major support at 110-EMA.
   
• The pair has been capped below 55-EMA and 5-DMA is sharply inclined north which supports further downside.
   
• Momentum indicators also support downside in the pair. RSI and Stochs are sharply lower.
   
• Break below 110-EMA will see dip till 200-DMA at 0.8871. Violation at 200-DMA could see further weakness.
   
• Upside remains capped at 55-EMA, break above could see upside till 23.6% Fib.

Support levels - 0.8899 (38.2% Fib), 0.8871 (200-DMA), 0.8789 (50% Fib)

Resistance levels - 0.8997 (55-EMA), 0.9030 (23.6% Fib), 0.9119 (Jan 31 high)

Recommendation: Stay short on break below 110-EMA, SL: 0.90, TP: 0.89/ 0.8870/ 0.8790

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