FxWirePro: NZD/USD breaks below 61.8% Fib, hits 16-week lows, dip till 0.6470 likely

NZD/USD chart - Trading View 

• NZD/USD extends weakness after breach of Channel support.
   
• The pair has hit 16-week lows at 0.6622, bias still bearish.
   
• Price action has slipped below 61.8% Fib and is on track to test 76.4% Fib at 0.6553.
   
• Momentum studies are highly bearish. But oscillators are at oversold so caution advised.
   
• Weekly charts support weakness. Volatility rising and MACD and DMI support downside.
   
• Price action has dipped below weekly cloud. Scope for weakness till 0.6553 (76.4% Fib) and then 0.6470 (trendline).
   
• Break above 5-DMA could see minor upside. Breakout at 200-DMA negates near-term bearishness.

Support levels - 0.66, 0.6585 (Jan 3 low), 0.6553 (76.4% Fib)

Resistance levels - 0.6632 (61.8% Fib), 0.6666 (5-DMA), 0.6729 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-holds-support-at-channel-base-good-to-go-short-on-break-below-1526960) has hit all targets.

Recommendation: Book partial profits at lows. Trail SL to 0.6670, target 0.6553/ 0.6470

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.