NZD/CAD Is Retracing

NZD/CAD has clearly been forming a retracement of the long-term bearish trend after it bounced off from the support at 0.8785. The pair has currently found some resistance at 0.9035, but it was clearly only temporary because it also bounced off from 0.8990 after forming an inverted hammer candlestick on the four-hour time-frame at that level. The question now is whether or when the pair will break out above the last high at 0.9035. If there is a breakout the pair will likely continue moving to the upside towards the resistance at 0.9090 which coincides with the (MA)89 indicator on the daily time-frame. On the other hand, if the pair continues falling and breaks out below 0.8990 its target to the downside will probably be the (MA)89 indicator on the four-hour time-frame at 0.8945.