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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

 

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