FxWirePro: NZD/CAD upside capped at 50-DMA, good to go long on decisive break above

• NZD/CAD is extending upside for 4th successive session, up 0.14% on the day.
   
• The pair hit session highs at 0.9023 before paring some gains to currently trade around 0.8985 levels.
   
• Kiwi to remain supported after upbeat CPI data, but caution seen ahead of the NZ election outcome.
   
• New Zealand CPI data was for Q3 and arrived at 0.5% q/q vs expected 0.4%, substantially higher than the RBNZ forecasts.
   
• Consumer Price Index (YoY) rose to 1.9%, also beating expectations at 1.8%.
   
• Technical indicators support upside in the pair, but 50-DMA at 0.8995 is capping upside in the pair.
   
• Decisive breakout above to see further gains. Scope then for test of 38.2% Fib retrace of 0.9758 to 0.8740 fall at 0.9129.

Support levels - 0.8980 (23.6% Fib retrace of 0.9758 to 0.8740 fall), 0.8923 (5-DMA), 0.8880 (Sept 27 low)

Resistance levels - 0.8995 (50-DMA), 0.9084 (Sept 20 high), 0.9129 (38.2% Fib)

Recommendation: Watch out for decisive break above 50-DMA to go long, target 0.9085/ 0.9130

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 160.682 (Bullish), while Hourly CAD Spot Index was at -82.674 (Bearish) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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