- NZD/CAD hits new 5-month lows at 0.8863 as the kiwi slumps across the board on a dovish RBNZ.
- The Kiwi hit by a dovish Reserve Bank of New Zealand (RBNZ) today. The central bank looks set to hold steady on rates for the foreseeable future.
- RBNZ Governor Adrian Orr said that the central bank is dedicated to easy monetary policy "for an extended period of time".
- NZD/CAD trades with a bearish momentum, we see scope for further weakness.
- Technical indicators are biased lower. MACD is showing a bearish crossover on signal line.
- Momentum studies are bearish. We see -ve DMI crossover on +ve DMI which adds to bearish bias.
- The pair has slipped below 61.8% Fib, eyes major trendline support at 0.8655. Breach there will see further weakness.
- On the flipside, we see major resistance at 200W SMA at 0.9110. Bearish invalidation only on break above.
Support levels - 0.8859 (2018 low), 0.8740 (Sept 2017 low), 0.8655 (trendline)
Resistance levels - 0.8880 (61.8% Fib), 0.8984 (5-DMA), 0.90
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -95.013 (Bearish), while Hourly CAD Spot Index was at 97.0088 (Bullish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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