FxWirePro: NZD/USD holds above 0.73 handle, weakness likely on break below 20-DMA

• Kiwi strengthens in early Asia on the back of higher than expected employment data, but failed to hold gains.
   
• New Zealand Q4 unemployment rate decreases to 4.5 % (forecast 4.6 %) vs previous 4.6%.
   
• NZD/USD trades 0.46% lower on the day, edges lower from session highs at 0.7345.
   
• Downside in holding above 0.73 handle and we see strong support at 20-DMA at 0.7313.
   
• Only decisive break below could see extension of weakness. Scope then for test of 38.2% Fib at 0.7185.
   
• Technical studies are bearish. RSI and Stochs are biased lower and MACD has shown a bearish crossover.
   
• Further we see bearish divergence from price action on RSI and Stochs which adds to the bearish bias.
   
• Violation at 38.2% Fib will see test of 200-DMA (currently at 0.7144). On the flipside bearish invalidation seen on break above double top at 0.7435.

Support levels - 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally), 0.7185 (38.2% Fib), 0.7144 (200-DMA)

Resistance levels - 0.7322 (5-DMA), 0.74, 0.7435 (double top)

Recommendation: Good to go short on decisive break below 20-DMA, SL: 0.74, TP: 0.7280/ 0.7185/ 0.7145.

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