FxWirePro: NZD/USD fails to hold above 20-DMA, retrace below 200-DMA at 0.7161 to see further weakness

• NZD/USD retraces CPI led knee-jerk spike, slips below 20-lower after hitting session highs at 0.7206.
   
• New Zealand CPI data was for Q3 and arrived at 0.5% q/q vs expected 0.4%, substantially higher than the RBNZ forecasts.
   
• Consumer Price Index (YoY) rose to 1.9%, also beating expectations at 1.8%.
   
• Markets remain wary ahead of the NZ election outcome, kiwi to remain under pressure.
   
• The major broke above 200-DMA at 0.7160 on Friday's trade, and the pair is currently holding support at that level.
   
• Technical bias remains higher. Retrace below 200-DMA at 0.7161 could see further weakness.

Support levels - 0.7161 (200-DMA), 0.7143 (5-DMA), 0.71 (61.8% Fib retrace of 0.68171 to 0.7558 rally), 0.7055 (Oct 10 low)

Resistance levels - 0.7183 (20-DMA), 0.72, 0.7275 (38.2% Fib)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-above-200-DMA-bias-higher-good-to-go-long-on-dips-951518) .

Recommendation: Watch out for decisive break above 20-DMA to go long

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 83.6459 (Bullish), while Hourly USD Spot Index was at 95.3801 (Bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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