NZD/CAD, on top of the channel

The price line at the moment is showing 0.868. The black line on the chart indicates the trend line which was formed during the current ascending wave. RSI is almost on 40 and has issued positive divergence signal. MACD is showing weakness in the descending wave. There is a strong resistance level on 0.8742 – 0.88105, which has been shown as a grey zone on the chart; this zone is of high importance as it almost equals to level 0.382 of the Fibonacci retracement as well as the top line of the channel. The price line is moving towards this zone; Traders can be waiting for the price line to reach out to the resistance level and then they can enter short positions, heading to level 0.5 and 0.618 of the Fibonacci retracement, which are lying at 0.866 and 0.852. Note that the price line breaks above the top line of the descending channel, an ascending wave would be more probable than a descending one.