- NZD/CAD has held major trendline support at 0.8740 in last week's trade.
- The pair has edged higher to break 20-DMA resistance at 0.8922, bias higher.
- Technical indicators support upside in the pair. RSI and stochs are biased higher and MACD is showing a bullish crossover on signal line.
- Close above 20-DMA raises scope for upside, next major resistance seen at 0.9010.
- On the flipside, 20-DMA at 0.8922 is immediate support, we see weakness on break below.
- We evidence bullish divergence on RSI and Stochs which adds to bullish bias.
Support levels - 0.8922 (20-DMA), 0.8876 (5-DMA), 0.8755 (trendline)
Resistance levels - 0.8980 (23.6% Fib retrace of 0.9758 to 0.8740 fall), 0.9015 (trendline), 0.9113 (Aug 29 high)
Recommendation: Good to go long on break above 0.9015, SL: 0.8920, TP: 0.91/ 0.9140/ 0.9170.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 99.1194 (Bullish), while Hourly CAD Spot Index was at -98.2654 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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