FxWirePro: NZD/CAD sees strong support at 0.8778, short on breaks below

• NZD/CAD is holding above strong trendline support at 0.8778, breaks below could see test of 0.8710.
   
• NZD/CAD weekly charts show that downtrend for the pair is intact and we see scope for tests of 85.85 in the medium-term.
   
• Technical indicators on daily charts are biased lower, Stochs and RSI convergence seen with price action.
   
• On the fundamental side, analysts feel oil prices have bottomed out and will gradually edge higher to trade in the $40-$50 range in the medium-term.
   
• Rising oil price and improving macro-economic conditions in the U.S. is likely to keep the Loonie supported.
   
• NZD outlook is biased to the downside, but do not see an imminent catalyst, particularly with local data still robust.
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Recommendation: Go short NZD/CAD on break below 0.8775, SL: 0.8850, TP: 0.8715/0.8685/0.8630