FxWirePro: NZD/CAD pauses downside at cloud top, break below targets 200-DMA at 0.8891

NZD/CAD chart on Trading View used for analysis

• NZD/CAD pauses downside at cloud top, finds support also at 110-EMA at 0.8911.
   
• The pair is extending weakness for the 3rd straight week, bias remains bearish.
   
• Momentum with the bears. RSI is below 50 and biased lower. MACD supports weakness.
   
• The pair has broken below 55-EMA support and is on track to test 200-DMA at 0.8891.
   
• Violation at 200-DMA will see further weakness. Next major bear target lies at 50% Fib at 0.8789.
   
• 55-EMA is immediate resistance at 0.8983. Breakout at 200W SMA at 0.9070 could see further upside.
   
• Focus will be on the Bank of Canada (BOC) rate decision (due Wednesday) for further impetus.

Support levels - 0.8926 (cloud top), 0.8891 (200-DMA), 0.8789 (50% Fib)

Resistance levels - 0.8975 (5-DMA), 0.8983 (55-EMA), 0.9035 (23.6% Fib)

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