- NZD/CAD was rejected at day's high by 0.8880 and is currently trading at 0.8846 after hitting session lows at 0.8832.
- The pair finds strong support by 50-DMA at 0.8826, break below could see test of next major support at 0.88 levels (trendline, psychological level), and then 0.8755.
- On the upside, immediate resistance is located at 0.8880 (session highs) ahead of 0.8895 (cloud base).
- Oil is currently trading near fresh 7-month highs at 49.34 and is likely to keep the loonie supported.
- Markets to focus on Fonterra’s opening forecast for the 2017 year (on Thu). The key US events will be the stream of Fed speeches, including Fed Chair Yellen’ (Fri).
Recommendation: Short break below 0.8825, SL: 0.8880, TP: 0.88/0.8755/0.87
