- NZD/CAD has shown a break below major trendline support at 0.9370, bias lower.
- Recovery attempts in the pair were rejected at 200-DMA and Technical indicators support downside.
- Upside on the day remains capped below 5-DMA and stiff resistance also seen at 50-DMA at 0.9382.
- 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 and Stochs adds to downside bias. Bearish invalidation on close above 200-DMA at 0.9448.
Support levels - 0.9318 (Apr 27 low), 0.9278 (Mar 31 low), 0.9175 (trendline)
Resistance levels - 0.9382 (50-MA), 0.9388 (5-DMA), 0.9412 (cloud top)
Recommendation: Good to go short on close below trendline at 0.9370, SL: 0.9415, TP: 0.9320/ 0.9275/ 0.92
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -144.22 (Bearish), while Hourly CAD Spot Index was at 27.8276 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
