FxWirePro: NZD/CAD extends major trendline break, Canadian dollar weakens ahead of BoC policy meet

NZD/CAD chart on Trading View used for analysis

• NZD/CAD is extending gains, trades at 0.9192, up 0.05% at the time of writing.
   
• The Canadian dollar weakens as we head into BoC policy meeting, the central bank is expected to keep policy rate unchanged at 1.75%.
   
• Price action has broken above 61.8% Fib and strong trendline resistance at 0.9095.
   
• Technical indicators are at overbought levels and we see bearish divergence on RSI and Stochs which raises scope for downside.
   
• However, we do not see any major signs of reversal. Price is attempting break above weekly cloud at 0.9180. Scope then for test of 78.6% Fib at 0.9262. 
   
• 5-DMA is immediate support at 0.9153. Retrace below 61.8% Fib could see dip till 200-DMA at 0.8923. Violation at 200-DMA will see bearish continuation.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.