NZD/CAD chart on Trading View used for analysis
FxWirePro Currency Strength Index for NZD/CAD: Bias Bearish
FxWirePro's Hourly NZD Spot Index was at -93.0223 (Bearish)
FxWirePro's Hourly CAD Spot Index was at 109.269 (Bullish)
Technical Analysis: Bias Bearish
- Price action has failed to extend break above 21-EMA
- Pair slips below 5-DMA, 5-DMA has turned south
- Major EMAs are downward sloping and price below daily cloud
- RSI below 50 and biased lower, MACD well below zero mark
Fundamental View:
- Markets will be watching out for New Zealand August business confidence data due later this week.
- The Reserve Bank of New Zealand (RBNZ) has cited weak investment intentions as a reason for a more subdued outlook for the New Zealand economy.
- RBNZ Gov Orr, at the Jackson Hole, reiterated that the central bank intends to hold policy rates low for an extended period of time which is likely to keep a lid on the Kiwi dollar.
Support levels - 0.8641 (Nov 17, 2017 low), 0.8561 (Aug 15 low), 0.8555 (trendline)
Resistance levels - 0.8679 (5-DMA), 0.8716 (21-EMA), 0.8761 (Aug 22 high)
Recommendation: Good to go short on upticks, SL: 0.8720, TP: 0.86/ 0.8565/ 0.8555
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
