FxWirePro: NZD/CAD hovers around 21-EMA, bearish divergence keeps scope for downside

NZD/CAD chart on Trading View used for analysis

• NZD/CAD has retraced dip below 21-EMA support, bias remains bullish.
   
• The pair is trading lagely muted at 0.9116 at the time of writing. kiwi dented on dismal NZ Q3 GDP and risk-off market profile.
   
• Data released earlier today showed New Zealand Q3 GDP arrived at +0.3% q/q vs the 0.6% expected and 1.0% in Q2.  
• For the y/y, GDP was up 2.6% missing forecasts at 2.8% compared to 3.2% prior, revised up from 2.8%. 
   
• Technical indicators are biased lower for the day and bearish divergence on RSI and Stochs keeps scope for weakness.
   
• Break below 21-EMA to see dip till 23.6% Fib at 0.9035. Further weakness will see test of 200-DMA at 0.89.

Support levels - 0.91 (21-EMA), 0.9035 (23.6% Fib), 0.89 (200-DMA)

Resistance levels - 0.9133 (5-DMA), 0.92, 0.9270 (Upper BB)

Recommendation: Watch out for decisive break below 21-EMA to go short.

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