FxWirePro: NZD/CAD trades rangebound below 50-DMA at 0.8850, upside only on decisive break above

• NZD/CAD has retraced break above 50-DMA on Tuesday's trade and close below 50-DMA.
   
• The pair is trading in a narrow range on the day, capped below 50-DMA at 0.8850.
   
• Technical studies support upside, RSI biased higher, gaining upside traction at 56 levels.
   
• Stochs are biased higher, momentum studies are bullish, bullish divergence from price action on RSI and Stochs supports bullish bias.
   
• Break above 50-DMA to see further gains, scope then for test of 23.6% Fib at 0.89.

Support levels - 0.8802 (5-DMA), 0.8785 (20-DMA), 0.8740 (Sept 12 low)

Resistance levels - 0.8850 (50-DMA), 0.8905 (23.6% fib retrace of 0.87581 to 0.86417 fall), 0.8929 (Nov 1 high), 0.8996 (100-DMA)

Recommendation: Good to go long on breakout above 50-DMA at 0.8850, SL: 0.8785, TP: 0.89/ 0.8930/ 0.90.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 112.498 (Bullish), while Hourly CAD Spot Index was at -126.104 (Bearish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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