- NZD/CAD is extending trade in a 'Symmetric Triangle' pattern.
- Price action has been struggling to break 21-EMA resistance which is capping upside from several session.
- On the data front, a negative surprise in NZ trade report left Kiwi bulls unimpressed.
- New Zealand trade balance arrived at NZD 113m deficit in June vs. 200m surplus expected.
- Data asserts prospects of a Reserve Bank of New Zealand (RBNZ) remain a distant dream.
- Technical indicators are biased bearish and we see scope for test of triangle base at 0.8855.
- Only a decisive breakout at 21-EMA can break the bearish trend. Next major resistance lies at 55-EMA at 0.90.
Support levels - 0.8872 (July 17 low), 0.8850 (triangle base), 0.8831 (July 3 low)
Resistance levels - 0.8943 (5-DMA), 0.8957 (21-EMA), 0.9008 (55-EMA)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 33.8734 (Neutral), while Hourly CAD spot Index was at 29.211 (Neutral) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
