- NZD/CAD edged higher from 2-week lows at 0.9008, currently trades at 0.9046 level.
- Kiwi derives support from upbeat New Zealand trade data while CAD dented on weakness in oil prices, pushing the pair higher.
- Technically, we see support at 20-DMA at 0.9026, break below will see resumption of weakness.
- NZD/CAD is extending downside after the pair failed to hold break at 200-DMA at 0.9131.
- Recovery is capped at 5-DMA which is immediate resistance at 0.9051, we see upside only on decisive close above.
- Technical studies are bearish. RSI is biased lower and Stochs are showing bearish momentum.
- We see bearish invalidation only on breakout above 200-DMA.
Support levels - 0.9026 (20-DMA), 0.9001 (Jan 17 low), 0.8905 (23.6% Fib retrace of 0.9758 to 0.8641 fall)
Resistance levels - 0.9051 (5-DMA), 0.9068 (38.2% Fib retrace of 0.9758 to 0.8641 fall), 0.9129 (200-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-fails-to-hold-break-above-200-DMA-bias-lower-stay-short-1119773) has hit TP1/2.
Recommendation: Book partial profits at lows. Watch for break below 20-DMA for further weakness.
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