FxWirePro: NZD/CAD pauses downside at 78.6% Fib, break below to see further weakness

• NZD/CAD is trading in a narrow range, made a day's high at 0.8842 and a low of 0.8817.
   
• The pair has paused downside at 78.6% Fib at 0.8829, break below will see further downside.
   
• NZD on the defensive on dampening  data for the New Zealand economy.
   
• Markets are likely pushing out expectations of any rate hikes from RBNZ into 2019.
   
• The pair trades with a bearish momentum, price has dipped into the monthly cloud.
   
• Next major support on the downside lies at 0.8740 (nearly converged trendline and 88.6% Fib).

Support levels - 0.88, 0.8740 (nearly converged trendline and 88.6% Fib), 0.87, 0.8681 (Dec 4 low)

Resistance levels - 0.8864 (5-DMA), 0.89, 0.8976 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1306668) has hit TP1. 

Recommendation: Stay short. Watch out for break below 78.6% Fib for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -160.211 (Bearish), while Hourly CAD Spot Index was at 60.2704 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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