- NZD/CAD extends grinds lower capped at 5-DMA at 0.8777, bias lower.
- Recovery in the pair failed at 5-DMA, price action currently down 0.05% on the day.
- Technical studies are bearish, price action below daily cloud and 50-DMA.
- We see scope for test of major trendline support at 0.8670. Violation there could see further downside.
- On the flipside, break above 20-DMA at 0.8803 could see minor upside till 0.8871 (50-DMA). We see bearish invalidation above 50-DMA.
Support levels - 0.8712 (Oct 20 low), 0.8689 (Oct 25 low), 0.8670 (major trendline)
Resistance levels - 0.8777 (5-DMA), 0.8803 (20-DMA), 0.8871 (50-DMA)
Recommendation: Good to short rallies around 0.8755/60, SL: 0.8820, TP: 0.87/ 0.8670/ 0.8610.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -112.778 (Bearish), while Hourly CAD Spot Index was at 14.2993 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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