FxWirePro: NZD/CAD extends weakness for the 4th straight session, bias lower, stay short

NZD/CAD chart on Trading View used for analysis 

• NZD/CAD exrends weakness for the 4th straight session, bias lower.
   
• Kiwi offered after the NZIER quarterly survey of business opinion showed a net 30 percent of firms surveyed expected general business conditions to deteriorate compared with 20 percent in the previous quarter.
   
• The latest reading is the lowest since March 2009 and justifies the Reserve Bank of New Zealand's (RBNZ) dovish tilt. 
   
• Technical bias is bearish. Price action below major EMAs and upside capped at 55-EMA and cloud.
   
• RSI and Stochs are sharply lower and MACD shows bearish crossover on signal line. We see -ve DMI crossover on +ve DMI which adds to the bearish crossover.
   
• Technicals on weekly charts are also strongly bearish. Momentum with the bears.

Support levels - 0.8427 (88.6% Fib), 0.8234 (Aug 2015 low)
Resistance levels - 0.85, 0.8549 (5-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1436374) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 19.5283 (Neutral), while Hourly CAD Spot Index was at 75.5531 (Neutral) at 1245 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.