NZD/CAD breaks below daily cloud, eyes 88.6% Fib
NZD/CAD is extending previous week's massive slump where the pair fell over 3.25%.
The major has started the week on a bearish note, trades 0.22% lower on the day at 0.8881 at the time of writing.
Price action as slipped below daily cloud and is currently hovering around 78.6% Fib.
Break below eyes next major support at 88.6% Fib at 0.8836 ahead of 0.8825 (trendline) and May 17 low at 0.8786.
Technical analysis supports downside in the pair. Our currency strength index also shows bearishness for the pair.
We see bearish invalidation only on retrace above 200-DMA at 0.9039.
Support levels - 0.8861 (Jan 3 low), 0.8836 (88.6% Fib), 0.8825 (trendline support)
Resistance levels - 0.89, 0.8982 (5-DMA), 0.90, 0.9039 (200-DMA)
Good to stay short on upticks, SL: 0.8945, TP: 0.8860/ 0.8825/ 0.8790
The major has started the week on a bearish note, trades 0.22% lower on the day at 0.8881 at the time of writing.
Price action as slipped below daily cloud and is currently hovering around 78.6% Fib.
Break below eyes next major support at 88.6% Fib at 0.8836 ahead of 0.8825 (trendline) and May 17 low at 0.8786.
Technical analysis supports downside in the pair. Our currency strength index also shows bearishness for the pair.
We see bearish invalidation only on retrace above 200-DMA at 0.9039.
Support levels - 0.8861 (Jan 3 low), 0.8836 (88.6% Fib), 0.8825 (trendline support)
Resistance levels - 0.89, 0.8982 (5-DMA), 0.90, 0.9039 (200-DMA)
Good to stay short on upticks, SL: 0.8945, TP: 0.8860/ 0.8825/ 0.8790
