- NZD/CAD takes 20-DMA support, we see weakness only on break below.
- Kiwi buoyed by upbeat New Zealand trade data and sovereign debt rating affirmation by S&P.
- The pair has broken above 5-DMA and 38.2% Fib retrace of 0.9758 to 0.8641 fall at 0.9068.
- Bias remains bullish as long as 20-DMA support holds, break below will see resumption of weakness.
- 200-DMA at 0.9127 offers strong resistance, breakout will see further bullishness. Scope then for test of 0.92 levels.
Support levels - 0.9055 (5-DMA), 0.9035 (20-DMA), 0.9001 (Jan 17 low), 0.8905 (23.6% Fib retrace of 0.9758 to 0.8641 fall)
Resistance levels - 0.9097 (Jan 25 high), 0.9127 (200-DMA), 0.92 (50% Fib)
Recommendation: Good to go long on break above 200-DMA, SL: 0.9055, TP: 0.9170/ 0.92
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