- NZD/CAD extends range trade around channel base support at 0.93 levels.
- We require a decisive break below to see further downside in the pair.
- The antipodeans remain depressed after weaker-than-expected China PMI data.
- China's PMI came in at 51.0, missing 51.7 expected and compared to the previous period's reading of 51.6.
- Technical indicators on intraday charts are bearish. Bearish divergence on RSI and Stochs adds to bearish bias.
- Decisive break below channel base will accentuate weakness. Scope then for test of 50-DMA at 0.9259.
- On the flipside, close above 5-DMA at 0.9328 will see upside till 20-DMA. Break above 20-DMA will see resumption of upside.
Support levels - 0.9259 (50-DMA), 0.9204 (Feb 28 low), 0.9183 (38.2% Fib)
Resistance levels - 0.9328 (5-DMA), 0.9381 (20-DMA), 0.94
Recommendation: Good to go short on break below channel base, SL: 0.9280, TP: 0.9280/ 0.9260/ 0.92.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
