FxWirePro: NZD/CAD struggles at 21-EMA, upside only on break above

• NZD/CAD is extending trade in a 'Symmetric Triangle' pattern.
   
• Price action has been struggling to break 21-EMA resistance which is capping upside from several session.
   
• On the data front, a negative surprise in NZ trade report left Kiwi bulls unimpressed.
   
• New Zealand trade balance arrived at NZD 113m deficit in June vs. 200m surplus expected.
   
• Data asserts prospects of a Reserve Bank of New Zealand (RBNZ) remain a distant dream.
   
• Technical indicators are biased bearish and we see scope for test of triangle base at 0.8855.
   
• Only a decisive breakout at 21-EMA can break the bearish trend. Next major resistance lies at 55-EMA at 0.90.

Support levels - 0.8872 (July 17 low), 0.8850 (triangle base), 0.8831 (July 3 low)

Resistance levels - 0.8943 (5-DMA), 0.8957 (21-EMA), 0.9008 (55-EMA)

Recommendation: We prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 33.8734     (Neutral), while Hourly CAD spot Index was at 29.211 (Neutral) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.