- NZD/CAD is extending grind lower along 100-DMA currently at 0.8893.
- Kiwi largely ignores improvement in milk prices at GDT auction overnight. The Global Dairy Trade Price Index gained 2.2 percent at the first auction of the year.
- Subdued dairy supply outlook as Fonterra dropped its forecast for NZ milk collection for second consecutive month weighed.
- The pair is in the red for a 3rd consecutive week, technical studies have turned bearish.
- Price action has currently found support at daily cloud top at 0.8863, break below will see further drag.
Support levels - 0.8863 (cloud top), 0.8837 (50-DMA), 0.8750 (trendline)
Resistance levels - 0.8901 (5-DMA), 0.9035 (Dec 18 high), 0.9084 (Sept 20 high)
Recommendation: Good to go short on rallies around 0.89, SL: 0.8950, TP: 0.8860/ 0.8835/ 0.88/ 0.8750.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -66.1099 (Neutral), while Hourly CAD Spot Index was at 25.4797 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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