NZD/CAD has been in a long term bear trend and recovery attempts were rejected at 50-DMA.
Technical studies are , we see scope for further downside.
0.87 offers strong support for the pair. It is convergence of two major .
Break below to accentuate weakness. Scope then for test of 0.8610 (2017 lows) ahead of 78.6% Fib at 0.8596.
We see invalidation only on break above 50-DMA currently at 0.8939.
Bank of Canada meeting is the key risk event. Markets expect no change in rates and a dovish message taking into account the latest round of data.
Support levels - 0.8980 (23.6% Fib retrace of 0.9758 to 0.8740 fall), 0.8923 (5-DMA), 0.8880 (Sept 27 low)
Resistance levels - 0.8995 (50-DMA), 0.9084 (Sept 20 high), 0.9129 (38.2% Fib)
Good to go short on break below 0.87, SL: 0.8775, TP: 0.8610/ 0.8595/ 0.8520.