- NZD/CAD has shown a break below Triangle Base support at 0.8855, bias bearish.
- Kiwi dumped across the board after mixed NZ jobs data and China Caxin PMI miss.
- Data released by Statistics New Zealand showed that the unemployment rate lifted to 4.5 percent in the three months ended June 30 from 4.4 percent in March.
- Meanwhile, private sector wage inflation rose 0.6 percent in the quarter for a 2.1 percent annual increase, in line with expectations.
- Also, downbeat Chinese Caixin manufacturing PMI suggested to a slowdown in the Chinese economy further denting the antipodeans.
- Technical indicators support weakness in the pair. Decisive breach of 'Symmetric Triangle' pattern to see more downside.
- Scope then for test of 88.6% Fib at 0.8741. We see bearish invalidation only above 21-EMA.
Support levels - 0.8829 (78.6% Fib), 0.8786 (May 17 low), 0.8741 (88.6% Fib)
Resistance levels - 0.8868 (5-DMA), 0.89, 0.8921 (21-EMA)
Recommendation: Stay short on decisive close below 'Triangle base', target 0.8830/ 0.8785/ 0.8745
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -121.063 (Bearish), while Hourly CAD Spot Index was at 116.43 (Bullish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
