NZD/CAD chart on Trading View used for analysis
- NZD/CAD edges higher from fresh weekly lows at 0.8935 with a Doji formation.
- Upside struggling to gather momentum, trades rangebound on the day at 0.8979 at 0730 GMT.
- Technical indicators are bearishly aligned in the near-term. Scope for further weakness.
- Price action remains capped below 55-EMA and is on track to test 200-DMA at 0.8882.
- On the weekly charts the pair is edging lower from upper Bollinger Band. Is holding support at 0.8932 (21W EMA).
- Break below 0.8930 to see test of 200-DMA. Violation there to see further weakness.
- While on the flipside, immediate resistance is seen at 5-DMA at 0.90. Break above 20-DMA to see further upside.
Support levels - 0.8924 (110-EMA), 0.8882 (200-DMA), 0.8789 (cloud base)
Resistance levels - 0.8989 (55-EMA), 0.9008 (5-DMA), 0.9035 (23.6% Fib)
Recommendation: Good to stay short below 0.8930, SL: 0.90, TP: 0.8880/ 0.88
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
