FxWirePro: NZD/CAD finds strong support at 200-DMA (0.9062), break below required for further weakness

• NZD/CAD finds strong support at 200-DMA 0.9062, break below will see further weakness.
   
• The pair has retraced brief dip below 200-DMA, extends sideways trade.
   
• Price capped below 0.91 handle, trades range-bound, hit day's high at 0.91 and low of 0.9078.
   
• Price action has broken below 20W SMA at 0.9163, close below will see further weakness.
   
• Technical indicators on weekly charts have turned bearish. RSI has slipped below 50 and Stochs are sharply lower.
   
• Violation at 200-DMA will accentuate weakness. Scope then for test of 61.8% Fib at 0.8976.
   
• 5-DMA at 0.9113 is immediate resistance, break above could see test of 20-DMA at 0.9227.

Support levels - 0.9080 (50% Fib), 0.9062 (200-DMA), 0.8976 (61.8% Fib)

Resistance levels - 0.9113 (5-DMA), 0.9183 (38.2% Fib), 0.92, 0.9212 (cloud base)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-breaks-below-daily-cloud-eyes-200-DMA-at-09065-good-to-short-rallies-1273062) has hit TP1/2.

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

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -14.1799 (Neutral), while Hourly CAD Spot Index was at 46.8649 (Neutral) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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