- NZD/USD struggle at 21-EMA and falling trendline resistance as a negative surprise in NZ trade report left Kiwi bulls unimpressed.
- New Zealand trade balance arrived at NZD 113m deficit in June vs. 200m surplus expected.
- Data asserts prospects of a Reserve Bank of New Zealand (RBNZ) remain a distant dream.
- The major is extending sideways grind at major resistance at 0.6810 (nearly converged 21-EMA and falling trendline).
- Technical indicators on daily charts are flat to slightly bullish. Break above 0.6810 will propel the pair higher.
- We evidence bullish divergence on RSI and Stochs which keeps scope for upside in the pair.
- Focus now shifts towards the US new home sales data due later today ahead of the US Q2 GDP figures slated for release this Friday.
Support levels - 0.6785 (5-DMA), 0.6716 (61.8% Fib), 0.6685 (trendline)
Resistance levels - 0.6810 (nearly converged 21-EMA and trendline), 0.6855 (23.6% Fib), 0.6880 (50-DMA)
Recommendation: We prefer to wait foe clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 0.281626 (Neutral), while Hourly USD Spot Index was at -79.1741 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
