FxWirePro: NZD/CAD struggles at 20-DMA, decisive close above to drive further gains

Technical Analysis:

- NZD/CAD has broken major trendline resistance at 0.9350, but failed to close above 20-DMA on Wednesday's trade.

- Stochs and RSI have rolled over from oversold and are biased higher.

- MACD line shows a bullish crossover on signal line.

- We see scope for test of 100-DMA at 0.9491. Bullish invalidation on close below 5-DMA at 0.9335.

Fundamental Studies: 

- Broad-based dollar weakness could keep the pair supported.

- Sentiment around the higher-yielding NZD could be dented in wake of tumbling Asian stocks and oil prices.

Important Levels:

- Support: 0.9382 (20-DMA), 0.9350 (Trendline), 0.9335 (5-DMA)

- Resistance: 0.9460 (Dec 15 high), 0.9491 (100-DMA), 0.95

FxWirePro Currency Strenght Index: FxWirePro's Hourly NZD Spot Index was at 170.537 (Highly bullish), while Hourly CAD Spot Index was at -101.834 (Highly bearish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

Recommendation: We had advised a long call in the pair (http://www.econotimes.com/FxWirePro-NZD-CAD-on-track-to-test-100-DMA-at-09491-good-to-go-long-on-dips-466818). Recommend holding for targets.