FxWirePro: NZD/CAD grinds lower along 5-DMA, eyes 88.6% Fib at 0.8741, stay short

• NZD/CAD is extending grind lower, remains capped below 5-DMA at 0.8843.
   
• The pair has broken 78.6% Fib at 0.8829, raising scope for further downside.
   
• The major has faded spike post New Zealand’s budget release, slips lower from session highs at 0.8850.
   
• NZD on the defensive on dampening  data for the New Zealand economy and markets are likely pushing out expectations of any rate hikes from RBNZ into 2019.
   
• The pair trades with a bearish momentum, price has dipped into the monthly cloud.
   
• Next major support on the downside lies at 0.8740 (nearly converged trendline and 88.6% Fib). 
   
• Violation there could see further downside. Next major bear target lies at 0.8655 (major trendline).
   
• On the flipside, 5-DMA is immediate resistance, break above could see minor bullishness. Bearish invalidation only above 21-EMA at 0.8993.

Support levels - 0.8740 (nearly converged trendline and 88.6% Fib), 0.87, 0.8681 (Dec 4 low)

Resistance levels - 0.88, 0.8843 (5-DMA), 0.89, 0.8976 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-CAD-Trade-Idea-1306668) has hit TP1. 

Recommendation: Bias lower, hold for further weakness.

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