- NZD/USD has slipped below major trendline support at 0.72, bias lower.
- The RBNZ held interest rates unchanged at 1.75% as expected. Kiwi slightly lower on RBNZ jawboning.
- Recovery in the pair capped at 5-DMA (0.7239) which is strong resistance.
- Momentum indicators are bearish, we see scope for further downside.
- Bears eye 200-DMA at 0.7148. Breach at 200-DMA could see more weakness.
Support levels - 0.7148 (200-DMA), 0.71 (61.8% Fib retracement of 0.68176 to 0.75580 rally), 0.7057 (June 1 low)
Resistance levels - 0.7239 (5-DMA), 0.7248 (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: We stand by our short call. Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -81.5232 (Bearish), while Hourly USD Spot Index was at 162.397 (Bullish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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