- NZD/CAD finds stiff resistance at 21-EMA at 0.8963, the pair is struggling to break above.
- Momentum studies are bullish and RSI is nicely converging to price action.
- The pair is trading in a 'Symmetric Triangle' pattern and has bounced off triangle base on July 3 trade.
- Breakout above 21-EMA could take the pair higher, scope then for test of 38.2% Fib at 0.9065.
- On the flipside, rejection at 21-EMA could see re-test of triangle base support at 0.8855.
Support levels - 0.8938 (5-DMA), 0.8875 (July 13 low), 0.8855 (triangle base)
Resistance levels - 0.8963 (21-EMA), 0.9016 (55-EMA), 0.9044 (cloud base), 0.9065 (38.2% Fib)
Recommendation: Good to go long on breakout at 21-EMA, SL: 0.8930, TP: 0.9015/ 0.9045/ 0.9065
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -25.2825 (Neutral), while Hourly CAD Spot Index was at -60.7031 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
