- NZD/CAD attempts to break above 100-DMA have been rejected at multiple occasions since June 5th trade.
- Price has now broken below strong support at 55-EMA which has opened up downside for the pair.
- Technical indicators have also turned bearish. RSI below 50 levels, bias lower.
- Stochs are sharply lower and MACD is on verge of a bearish crossover on signal line.
- Next immediate support lies at 0.9058 (38.2% Fib). Break below could see weakness till cloud base.
- On the upside, 5-DMA at 0.9133 is immediate resistance. Break above 100-DMA needed for meaningful gains.
Support levels - 0.9058 (38.2% Fib), 0.9006 (50% Fib), 0.8955 (61.8% Fib and cloud base)
Resistance levels - 0.9094 (55-EMA), 0.9131 (5-DMA), 0.9173 (100-DMA)
Recommendation: Good to go short on close below 55-EMA, SL: 0.9175, TP: 0.9060/ 0.90/ 0.8955
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -76.3128 (Neutral), while Hourly CAD Spot Index was at 64.2408 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
