FxWirePro: NZD/CAD recovery lacks traction, stay short for further downside

• NZD/CAD recovery rejected at session highs at 0.8749, slips lower to currently trade at 0.8708 levels.
   
• The pair is extending downside after rejection at 50-DMA, slips below 20-DMA, 5-DMA has turned lower.
   
• Technical studies are bearish, Stochs and RSI biased lower, MACD shows bearish crossover on signal line.
   
• Daily cloud also weighs heavily on the upside, we see bearish invalidation only on break above.
   
• Grave stone Doji formation seen on weekly charts which suggests selling pressure at highs

Support levels - 0.8690 (minor trendline), 0.8641 (Nov 17 low), 0.8550 (major trendline)

Resistance levels - 0.8759 (5-DMA), 0.8768 (20-DMA), 0.88, 0.8831 (50-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1039033) has hit TP1.

Recommendation: Bias lower, stay short for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -15.9701 (Neutral), while Hourly CAD Spot Index was at 135.339 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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