FxWirePro: NZD/CAD holds strong support at 0.9404, good to go short on break below

• NZD/CAD has fallen below 200-DMA support at 0.9444.
   
• We see strong support at 0.9404 which is converged cloud base and trendline.
   
• Break below will see test of 0.9317 (Apr 27 low). Further weakness will drag the pair lower to 0.9175 (trendline).
   
• We see bearish divergence on RSI. Stochs have rolled over from overbought zone.
   
• Bearish invalidation on close above 200-DMA at 0.9446.

Support levels – 0.94, 0.9384 (20-DMA), 0.9318 (Apr 27 low), 0.9278 (Mar 31 low)

Resistance levels – 0.9446 (200-DMA), 0.9478/80 (Aug 23-26 2016 highs), 0.95

TIME   TREND INDEX    OB/OS INDEX    

1H          Bearish                 Neutral       

4H          Bearish                 Neutral       

1D          Neutral                Neutral        

1W         Neutral                Neutral      

Recommendation: Good to go short on a decisive break below 0.94, SL: 0.9470, TP: 0.9320/ 0.93/ 0.9275

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -95.6033 (Bearish), while Hourly CAD Spot Index was at -8.09156 (Neutral) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.