FxWirePro: NZD/CAD on track to test 200-DMA at 0.8928, stay short

NZD/CAD chart on Trading View used for analysis

• NZD/CAD consolidates previous session's slump, trades largely muted at the time of writing, at 0.8986 levels.
   
• The pair is extending weakness with 'Gravestone Doji' formation at highs on Wednesday's trade.
   
• Kiwi sell-off across the board is knocking the pair lower. Technical indocators are turning bearish.
   
• We also find that the momentum indicators on daily charts are at overbought levels.
   
• Some unwinding likely. Pair eyes 200-DMA at 0.8928. Breach there could see dip till 20-DMA at 0.8865.
   
• Major trend remains bullish. Failure to break below 200-DMA will see resumption of upside.

Support levels - 0.8928 (200-DMA), 0.8865 (20-DMA), 0.88 (38.2% Fib)

Resistance levels - 0.9010 (5-DMA), 0.91 (Nov 21 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-halts-upside-with-Gravestone-Doji-formation-dip-till-08844-likely-1462380) is progressing well.

Recommendation: Hold for targets

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