NZD/USD chart on Trading View used for analysis
- NZD/USD pauses upside and retraces break above 21-EMA, bias bearish.
- Kiwi offered across the board in response to dismal NZ business confidence reading.
- The ANZ business confidence reading fell to -50.3 in August from the previous month's print of -44.9.
- Details of the report showed that 5 percent of firms surveyed by ANZ intended to reduce investment.
- Further, the NZ-US 10-year yield spread hit a 3.5-month low today, signaling the NZD could be in for a deeper losses.
- NZD/USD is holding support at 2H 200-SMA. Break below will see further downside.
- Major trend in the pair remains bearish. Break below 2H 200 SMA will see resumption of weakness. Scope then for test of 0.6645 (Aug 15 low).
Support levels - 0.6647 (2H 200-SMA), 0.6619 (Aug 24 low), 0.66, 0.6544 (Aug 15 low)
Resistance levels - 0.6685 (21-EMA), 0.67, 0.6763 (55-EMA)
Recommendation: Good to go short below 2H 200 SMA, SL: 0.6690, TP: 0.66/ 0.6545
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -32.9275 (Neutral), while Hourly USD Spot Index was at 27.0931 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
