Source: PaxForex Premium Analytics Portal, Technical Insight

The kiwi is supported by a massive jump in the pace of quarterly producer price inflation (PPI), according to a report released during Thursday's Asia-Pacific session. Producer prices rose 3.6% in Q1, while output prices rose 2.6%, with the latest spike in price pressure interpreted by market participants as increasing the possibility of a second straight 50 bps rate hike from the RBNZ next week (rates are expected to rise to 2.0%).

NZD/CAD,D1

Pivot: 0.8194

Analysis:

As long as price is below 0.8350 follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 0.8194
• Take Profit 1: 0.8050
• Take Profit 2: 0.7950

Alternative scenario:

If the level of 0.8350 is broken-out, follow the recommendations below: 

• Time frame: D1
• Recommendation: long position
• Entry point: 0.8350
• Take profit 1: 0.8500
• Take profit 2: 0.8575

Comment:

RSI indicates the potential for decrease in the medium term.

Key levels: