- Kiwi was supported by upbeat NZ trade data pushing NZD/CAD higher on the day.
- New Zealand June trade Balance came at $-3.66B y/y, beating expectations at $-3.7B).
- Imports came in at $4.46B, above forecasts at $4.39B, while exports at $4.7B were also above forecasts at $4.6B.
- Recovery in the pair was however capped below 5-DMA. The pair also finds stiff resistance at 20-DMA at 0.9353.
- Technical indicators on weekly charts are bearish. RSI is below 50 and biased lower.
- Stochs are bearish and MACD has shown a bearish crossover on signal line.
Support levels - 0.9220 (trendline), 0.9206 (weekly 100-SMA), 0.9171 (April 12 low), 0.9123 (weekly 200-SMA)
Resistance levels - 0.9304 (5-DMA), 0.9353 (20-DMA), 0.94
Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-NZD-CAD-finds-stiff-resistance-at-20-DMA-good-to-go-short-on-rallies-818778).
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 73.0347 (Neutral), while Hourly CAD Spot Index was at 75.2947 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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