- NZD/CAD is extending decline after upside was capped at 78.6% Fib at 0.9519.
- The pair is currently hovering around 20-DMA and we see further weakness on decisive close below.
- The pair is extending trade in a 'Cup and Saucer' pattern and finds strong support at 0.92 levels.
- Technical indicators on intraday charts have turned bearish. Bearish divergence on RSI and Stochs adds to bearish bias.
- Close below 20-DMA will see downside. Break below 0.92 handle will invalidate bullish bias.
- On the flipside, break above 5-DMA at 0.9432 will see upside till 78.6% Fib. Break above 78.6% Fib will see resumption of upside.
Support levels - 0.9331 (61.8% Fib), 0.93, 0.92
Resistance levels - 0.9363 (20-DMA), 0.94, 0.9431 (5-DMA)
Recommendation: Good to go short on decisive close below 20-DMA at 0.9363, SL: 0.94, TP: 0.9330/ 0.93/ 0.92
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -95.6576 (Bearish), while Hourly CAD Spot Index was at 58.8494 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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