FxWirePro: NZD/CAD breaks below 200-DMA, good to go short on rallies

• 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.