- NZD/CAD up 0.38% on the day, currently trading just below 0.89 handle.
- We see a potential bearish 'Anti Crab' pattern forming on NZD/CAD daily charts which raises scope for upside.
- Technical indicators also support upside, RSI and Stochs are biased higher.
- The pair is currently struggling to break 50-DMA at 0.8903, decisive break above could see further gains.
- Scope then for test of 38.2% Fib at 0.9097 ahead of 100-DMA at 0.9133.
- On the flipside, 20-DMA is immediate support, break below could see extension of weakness till 0.8689 levels.
Support levels - 0.8851 (20-DMA), 0.8840 (5-DMA), 0.8712 (Oct 20 lows), 0.8689 (Oct 25 low)
Resistance levels - 0.8903 (50-DMA), 0.8941 (converged cloud base and 23.6% Fib retrace of 0.9758 to 0.8689 fall), 0.9097 (38.2% Fib), 0.9133 (100-DMA)
Recommendation: Good to go long on decisive break above 50-DMA at 0.8903, SL: 0.8840, TP: 0.8940/ 0.90/ 0.9090
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 166.977 (Bullish), while Hourly CAD Spot Index was at -58.5381 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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