FxWirePro: NZD/USD hits 3-week lows at 0.6630, kiwi extends weakness after disappointing GDT price index

NZD/USD chart on Trading View used for analysis

• Kiwi tracks sharp losses in its Australian counterpart, slips lower across the board.
   
• NZD/USD extends weakness below 0.66 handle, hits 3-week lows at 0.6630.
   
• The kiwi extends wekaness after disappointing GDT price index. NZ bi-weekly GDT price index declined a further 1.3% after a 0.7% fall in the previous auction.
   
• The latest NZIER quarterly survey of business opinion which showed general business conditions at its lowest since March 2009 keeps pressure on the kiwi.
   
• Technical indicators have turned bearish. RSI and Stochs are sharply lower. Price action has been rejected at 55-EMA and daily cloud.
   
• MACD is on verge of bearish crossover on signal line and upside is capped at 5-DMA at 0.6601.
   
• We see scope for dip till 0.6480 (trendline support). Violation there could see further weakness. Bearish invalidation above 55-EMA at 0.6672.

Support levels - 0.6544 (Aug 15 low), 0.65, 0.6480 (trendline support)

Resistance levels - 0.6601 (5-DMA), 0.6668 (55-EMA), 0.67

Recommendation: Good to stay short on upticks around 0.66, SL: 0.6675, TP: 0.6545/ 0.65/ 0.6480

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-rejected-at-daily-cloud-dip-till-06480-likely-stay-short-on-upticks-1437262) has hit TP1.

Recommendation: Book partial profits. Hold for further weakness.

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 1010 GMT.

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