NZD/CAD chart on Trading View used for analysis
- NZD/CAD edges higher for the 2nd straight session, trades 0.33% higher at 0.9041 at 0630 GMT.
- Kiwi buoyed after New Zealand inflation numbers surprised to the upside. Q4 2018 CPI rises +1.9% y/y, beating expectations at 1.8%.
- The pair has broken above 20-DMA resistance at 0.9025. Price action is extending upside with 'hammer' formation at 38.2% Fib support.
- Momentum with the bulls. Close above 20-DMA will see further gains.
- Scope for test of 0.9165 (Dec 31st high). Break below 5-DMA will see downside resumption.
Support levels - 0.9025 (20-DMA), 0.8983 (5-DMA), 0.89 (38.2% Fib)
Resistance levels - 0.9065 (200-W SMA), 0.9165 (Dec 31 high), 0.92
Recommendation: Good to stay long on close above 20-DMA at 0.9025, SL: 0.8980, TP: 0.9065/ 0.9165
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
