- NZD/CAD pauses recovery at 0.89 handle, bulls struggling to extend gains further.
- We feel recovery in the pair lacks momentum, follow through unlikely.
- The pair finds stiff resistance at 1H 110-EMA at 0.8927, breakout could see further upside.
- We find bullish divergence on Stochs and RSI in the hourly charts.
- Price is currently struggling at hourly cloud which is capping upside. Break above could see test of 1H 110-EMA.
- Weakness in oil prices keeping the Canadian dollar subdued, supporting upside in the pair.
- Downside finds strong support at 0.8835 (major trendline), weakness to resume on break below.
Support levels - 0.8880 (78.6% Fib), 0.8835 (trendline), 0.88
Resistance levels - 0.89, 0.8927 (1H 110-EMA), 0.8955 (61.8% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -5.92862 (Neutral), while Hourly CAD Spot Index was at 86.5471 (Bullish) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
