FxWirePro: NZD/CAD holds strong support at 200-DMA, break below to see further weakness

NZD/CAD chart on Trading View used for analysis

• NZD/CAD holds strong support at 200-DMA, edges higher from session lows at 0.8927.
   
• The pair is trading at 0.8972, up 0.04% on the day at the time of writing.
   
• The kiwi has largely ignored miss in New Zealand Q3 retail sales data.
   
• New Zealand’s retail sales volumes were unchanged in Q3, versus expectations for a 1.0% q/q lift.
   
• “Today’s print presents some downside risk to our preliminary forecast for Q3 GDP growth of 0.6% q/q", said Analysts at ANZ.
   
• The pair is extending weakness with 'Gravestone Doji' formation at highs in last week's trade.
   
• We also find that the momentum indicators on daily charts are on verge of rollover from overbought levels.
   
• Pair has tested 200-DMA. Breach there could see dip till 20-DMA at 0.8885.
   
• Major trend remains bullish. Failure to break below 200-DMA will see resumption of upside.

Support levels - 0.8927 (200-DMA), 0.8885 (20-DMA), 0.88 (38.2% Fib)

Resistance levels - 0.9000 (5-DMA), 0.91 (Nov 21 high) 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-halts-upside-with-Gravestone-Doji-formation-dip-till-08844-likely-1462380) has hit TP1. 

Recommendation: Watch out for break below 200-DMA for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.