- NZD/CAD has shown a decisive break below 200-DMA support at 0.9447 on Thursday's trade.
- The pair has also broken strong support at 0.9404, price action has dipped below cloud base.
- We see scope for test of 0.9317 (Apr 27 low). Further weakness will drag the pair lower to 0.9175 (trendline).
- Bearish divergence on RSI adds to downside bias, Stochs are biased lower.
- Bearish invalidation on close above 200-DMA at 0.9447.
Support levels – 0.9377 (50-DMA), 0.9318 (Apr 27 low), 0.9278 (Mar 31 low)
Resistance levels – 0.94, 0.9427 (20-DMA), 0.9448 (200-DMA), 0.9478/80 (Aug 23-26 2016 highs)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Neutral Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good to go short on a decisive break below 0.9390/0.94, SL: 0.9470, TP: 0.9320/ 0.93/ 0.9275
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -58.279 (Neutral), while Hourly CAD Spot Index was at -1.63321 (Neutral) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
