FxWirePro: NZD/CAD sees strong support at 0.9020, further weakness only on breaks below

NZD/CAD tests cloud base at 0.9079, holding for now, downside accelerating towards the EU session.

• The RBNZ's Survey of Expectations recorded a sharp drop in expected inflation in two years' time, from 1.85% to 1.63%, weighing on the Kiwi.
   
• Also, gains in oil prices which surged 4% at both the sides of the Atlantic, supporting the resource based Lonnie.
   
• Techincals indicate further downside in the pair, strong support lies at 0.9020 (rising trendline), breaks below could take the pair to 0.87 levels.
   
• Resistance on the upside lies at 0.9214 (10-DMA), 0.9220 (5-DMA) and then at 0.9234 (Feb 15th highs).
   

Recommendation: Watch out for breaks below 0.9020 to go short, SL: 0.92, TP: 0.8935/0.87