Kiwi continues to remain under pressure, is likely to extend weakness in the wake of the electoral results. NZD/CAD has been in a long term bear trend and recovery attempts were rejected at 50-DMA. Technical studies are bearish, we see scope for further downside. 0.87 offers strong support for the pair. It is convergence of two major trendlines. Break below to accentuate weakness. Scope then for test of 0.8610 (2017 lows) ahead of 78.6% Fib at 0.8596. We see bearish 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.