- NZD/CAD has edged lower after hitting fresh 7-month highs at 0.9758.
- The pair remains pivotal near 78.6% Fib (0.9925 to 0.9171 fall) at 0.9750.
- Momentum indicators are at highly overbought levels with scope for correction.
- We see Doji formation at highs which raises scope for downside in the pair.
- 5-DMA at 0.9694 is strong support on the downside, break below will see further drag.
- On the flipside, breakout above 78.6% Fib confirms further upside.
- Technical indicators are inconclusive, we prefer to wait for clear directional bias.
Support levels - 0.9694 (5-DMA), 0.9636 (61.8% Fib), 0.9588 (June 5 low)
Resistance levels - 0.9750 (78.6% Fib), 0.9758 (session high), 0.98, 0.9847 (Nov 8th high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-CAD-poised-for-further-upside-after-200-DMA-breakout-stay-long-733334) has hit all targets.
Recommendation: Wait for clear directional bias. Watch out for break below 5-DMA.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 62.2133 (Neutral), while Hourly CAD Spot Index was at -27.8694 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
