FxWirePro: NZD/CAD capped at 5-DMA (0.9007), good to go short on break below 0.8912

• NZD/CAD upside falters shy of 38.2% Fib retrace of 0.9758 to 0.8740 fall at 0.9129.
   
• The kiwi dented by poor data and inconclusive election results which culminated in a hung parliament.
   
• The pair is extending gradual grind lower, slips below 5-DMA which now caps upside.
   
• 20-DMA at 0.8911 is strong support, break below will accentuate weakness.
   
• Technical studies have turned bearish on intraday charts, RSI below 50 and biased lower.
   
• We see scope for further downside, test of 0.8660 (major trendline support) now likely.
   
• Bearish invalidation only on breakout above 50-DMA at 0.9117.

Support levels - 0.8912 (converged weekly 5-SMA and 20-DMA), 0.89, 0.8860 (Sept 1 low)

Resistance levels - 0.9007 (5-DMA), 0.9083 (Sept 20 high),             0.9117 (50-DMA)

Recommendation: Good to go short on break below 0.8912, SL: 0.90, TP: 0.8860/ 0.8740/ 0.8660

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -76.1974 (Slightly Bearish), while Hourly CAD Spot Index was at 18.1077 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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