NZD/CAD chart on Trading View used for analysis
- NZD/CAD hits new 3-year lows at 0.8353, break below 88.6% Fib accentuates weakness.
- Kiwi sold-off across the board on account of the sharp rise in the treasury yields and due to EM crisis fears.
- The pair is trading with a strong bearish bias. Scope for test of Aug 2015 lows at 0.8234.
- Price action has broken strong trendline support at 0.8430 and is grinding lower after break below 88.6% Fib.
- Momentum indicators show some oversold pressures. Minor upticks likely. However, we see bearish invalidation only above 55-EMA at 0.8662.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1436374) has hit TP1.
Recommendation: Book partial profits at lows. Hold for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -41.8471 (Neutral), while Hourly CAD Spot Index was at 19.1626 (Neutral) at 0645 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
