- NZD/CAD holds major trendline support at 0.8740, weakness only on break below.
- We see Doji formation at lows on daily charts and oscillators are at oversold levels.
- We do not see signs of reversal in trend as yet, but 5-DMA is showing a turn.
- A decisive break above 20-DMA could see further upside. Scope then for test of next immediate resistance at 0.9025 (trendline).
- On the flipside, break below trendline support at 0.8740 will see test of 0.8584 (Nov 18 2016 low).
Support levels - 0.8820 (5-DMA), 0.88, 0.8740 (trendline), 0.8610 (Apr 27 low), 0.8596 (78.6% Fib retrace of 0.8234 to 0.9924 rise)
Resistance levels - 0.89, 0.8942 (20-DMA), 0.8980 (23.6% Fib retrace of 0.9752 to 0.8740 fall)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 75.5447 (Neutral), while Hourly CAD Spot Index was at -24.4961 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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