- NZD/CAD has shown a decisive break above 200-DMA at 0.9111, bias bullish.
- The pair is trading in a rising channel and we see scope for test of channel top at 0.9290.
- Technical indicators support higher, momentum studies are bullish and we see +ve DMI dominance.
- Breakout at channel top can propel the pair higher. Scope then for test of 61.8% Fib at 0.9331 ahead of 0.9416 (July 27 high).
- Immediate support lies at 5-DMA at 0.9142, break below could see re-test of 200-DMA.
- Breach at 200-DMA support at 0.9111 invalidates bullish bias.
Support levels - 0.9142 (5-DMA), 0.9111 (200-DMA), 0.9097 (20-DMA)
Resistance levels - 0.9295 (channel top), 0.9331 (61.8% Fib), 0.9416 (July 27 high)
Recommendation: Good to go long on dips around 0.9180/90, SL: 0.91, TP: 0.9295/ 0.9330/ 0.94.
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