- NZD/CAD pauses downside at strong trendline support at 0.8830, break below required for further weakness.
- The pair is trading in a narrow range, with the day's high at 0.8862 and a low of 0.8831.
- Price action has slipped below daily cloud and 78.6% Fib at 0.8880 and next major support below 0.8830 lies at 0.8786 (May 17 low).
- CAD remains supported by strong oil prices which have hit new highs for 2018 at 74.78.
- US oil pops over supply considerations as Libya's National Oil Corporation declared 'force majeure', or unforeseeable circumstances on key oil supplies.
- Technical analysis for the pair supports further weakness. Break below 0.8830 will see further downside.
- Some consolidation at current levels likely. We see bearish invalidation only above 200-DMA at 0.9039.
Support levels - 0.8830 (trendline), 0.88, 0.8786 (May 17 low)
Resistance levels - 0.8880 (78.6% Fib), 0.89, 0.8922 (5-DMA)
Recommendation: Good to go short on break below 0.8830, SL: 0.8880, TP: 0.88/ 0.8785
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -46.9137 (Neutral), while Hourly CAD Spot Index was at 76.0827 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
