FxWirePro: NZD/CAD extends bounce off 21-EMA, on track to test 88.6% Fib at 0.9381

NZD/CAD chart on Trading View used for analysis

• NZD/CAD is extending a bounce off 21-EMA support, bias remains bullish.
   
• The pair is trading in the green for the 3rd straight session, up 0.18% at 0.9232 at the time of writing.
   
• Technical indicators are biased higher, but bearish divergence keeps scope for weakness.
   
• Price action hovers shy of 78.6% Fib at 0.9262 and break above finds little resistance till 88.6% Fib at 0.9381.
   
• Focus on New Zealand Q3 GDP figures. Markets expect Q3 GDP to edge lower to 0.6% from 1.0% in the previous quarter. Any significant surprise could support the pair higher.
   
• Focus also on Bank of Canada's (BoC) Consumer Price Index due Wednesday for further direction.

Support levels - 0.92, 0.9162 (5-DMA), 0.9109 (21-EMA)

Resistance levels - 0.9262 (78.6% Fib), 0.9289 (Upper BB), 0.9381 (88.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1474368) is approaching final targets.

Recommendation: Book partial profits, hold for further upside, target 0.9260/ 0.9290

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