FxWirePro: NZD/CAD finds stiff resistance at 200-DMA, break above to propel the pair higher

NZD/CAD chart on Trading View used for analysis

• NZD/CAD extends sideways grind, finds stiff resistance at 200-DMA at 0.8937.
   
• Technical studies are supportive of further gains. Break above 200-DMA could propel the pair higher.
   
• Scope then for test of 0.8998 (110W EMA) ahead of 61.8% Fib at 0.9061.
   
• The Canadian dollar under pressure as Federal Court blocks Keystone XL pipeline.
   
• Further, ongoing sell-off in crude oil continues to hurt the demand for the commodity-sensitive loonie. 
   
• The pair finds immediate support at 5-DMA at 0.8850. Break below could see weakness till 110-EMA at 0.8722.

Support levels - 0.8850 (5-DMA), 0.8778 (38.2% Fib)

Resistance levels - 0.8937 (200-DMA), 0.8998 (110W EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1452805) has almost hit all targets.

Recommendation: Watch out for break above 200-DMA for further upside. 

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