FxWirePro: Kiwi buoyed by strong data and Fonterra’s price revision, NZD/CAD breaks 20-DMA, bias higher

• Kiwi buoyed on the back of strong Chinese industrial profits data and Fonterra’s revision to its farmgate milk prices
• China June Industrial profits climbed +19.1% y/y compared to +16.7% in the previous month.
• Also, the latest NZ trade balance data came in upbeat, which also added to the upside in the Kiwi.
• NZD/CAD closed above 5-DMA on Wednesday's trade, and price action has broken above 20-DMA on the day.
• Technical indicators have turned slightly bullish, scope for test of 200-DMA at 0.9450.
• 5-DMA has turned, RSI and Stochs are biased higher and MACD is showing a bullish crossover on signal line.

Support levels - 0.9351 (20-DMA), 0.9332 (5-DMA), 0.9220 (trendline)

Resistance levels - 0.94 (July 12 high), 0.9450 (200-DMA), 0.9465 (cloud base)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-CAD-finds-stiff-resistance-at-20-DMA-good-to-go-short-on-rallies-818778) has been stopped out.

Recommendation: Go long on close above 20-DMA, SL: 0.9350, TP: 0.9450/ 0.9465

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 68.1476 (Bearish), while Hourly CAD Spot Index was at 42.837 (Neutral) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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