- NZD/CAD is extending upside after bouncing off channel base with dragonfly doji formation.
- The pair has shown a decisive break above 200-DMA and we see scope for further upside.
- The pair is trading in a rising channel pattern and we see scope for test of channel top at 0.9280.
- Technical indicators support higher, momentum studies are bullish and we see +ve DMI dominance.
- Breakout at channel top can propel the pair higher. Scope then for test of 61.8% Fib at 0.9331 ahead of 0.9416 (July 27 high).
- Immediate support lies at 5-DMA at 0.9198, break below could see re-test of 200-DMA. Breach at 200-DMA invalidates bullish bias.
Support levels - 0.9198 (5-DMA), 0.9115 (20-DMA), 0.9110 (200-DMA)
Resistance levels - 0.9280 (channel top), 0.9331 (61.8% Fib), 0.9416 (July 27 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-extends-break-above-200-DMA-good-to-go-long-on-dips-1149954) is progressing well.
Recommendation: Bias higher, stay long.
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