FxWirePro: NZD/CAD extends break below 55-EMA, targets 61.8% Fib at 0.8955, stay short

• NZD/CAD extends break below 55-EMA, trades 0.28% lower on the day at 0.9038 at the time of writing.
   
• Downside has paused at 200-DMA support at 0.9041, break there will see resumption of weakness.
   
• Kiwi remains under pressure after the Reserve Bank of New Zealand (RBNZ) kept the overnight cash rate (OCR) unchanged at 1.75 percent.
   
• The RBNZ statement has a more dovish bias with the central bank also hinting readiness to act if conditions sway from its expected path.
   
• Further US oil hit multi-year highs above $73 a barrel supporting the CAD.
   
• Price has now closed below strong support at 55-EMA and is holding above 200-DMA support.
   
• Technical indicators have turned bearish. RSI below 50 levels, bias lower. Stochs are sharply lower and MACD shows a bearish crossover on signal line.
   
• Break below 200-DMA eyes next immediate support at 0.9006 (50% Fib) ahead of cloud base (0.8943).
   
• On the upside, 21-EMA at 0.9096 is immediate resistance. Only break above 100-DMA will negate bearish bias.

Support levels - 0.9006 (50% Fib), 0.8955 (61.8% Fib), 0.8943 (cloud base)

Resistance levels - 0.9096 (21-EMA), 0.9109 (5-DMA), 0.9172 (100-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-rejected-at-100-DMA-break-below-55-EMA-09094-opens-up-further-downside-1391587) is progressing well. TP1 hit. 

Recommendation: Watch out for break below 200-DMA for further weakness. 

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -94.2871 (Neutral), while Hourly CAD Spot Index was at 61.5996 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.