FxWirePro: NZD/CAD slips lower from fresh 5-month highs at 0.9162, further weakness likely on account of overbought pressures

NZD/CAD chart on Trading View used for analysis

• NZD/CAD has slipped lower from fresh 5-month highs at 0.9162.
   
• The pair is currently trading at 0.9118, down 0.23% on the day.
   
• Price action has broken above 61.8% Fib and strong trendline resistance at 0.9095.
   
• Technical indicators are showing some exhaution at overbought levels. 
   
• We also evidence bearish divergence on RSI and Stochs which raises scope for downside.
   
• However, we do not see any major signs of reversal. 5-DMA is immediate support at 0.9102.
   
• Retrace below 61.8% Fib could see dip till 200-DMA at 0.8923. Violation at 200-DMA will see bearish continuation.
   
• On the flipside, price action capped at upper Bollinger Band at 0.9163. Break above weekly cloud at 0.9180 could see test of 78.6% Fib at 0.9262.

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