FxWirePro: NZD/USD holds minor trendline support at 0.7170, break below to see further weakness

• NZD/USD has held minor trendline support at 0.7170 and edged higher to close above 0.72 handle on Thursday.
   
• Momentum indicators are still bearish, we see scope for further downside.
   
• 20-DMA at 0.7254 is stiff resistance on the upside, we see bearish invalidation only on close above.
   
• The RBNZ held interest rates unchanged at 1.75% as expected. Kiwi choppy on neutral RBNZ.
   
• Break below trendline support at 0.7170 eyes 200-DMA at 0.7149. Breach at 200-DMA could see more weakness.

Support levels - 0.7170 (trendline), 0.7149 (200-DMA), 0.71 (61.8% Fib retracement of 0.68176 to 0.75580 rally), 0.7057 (June 1 low)

Resistance levels - 0.7224 (5-DMA), 0.7253 (20-DMA), 0.7275 (38.2% Fib)

Call update: We had advised staying short in the pair (https://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-major-trendline-support-at-072-bias-lower-stay-short-920760).

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -24.8791 (Neutral), while Hourly USD Spot Index was at -24.8791 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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