FxWirePro: NZD/USD recovery lacks traction, break below 23.6% Fib to see further weakness

NZD/USD chart - Trading View 

NZD/USD extends previous session's slump, trades 0.12% lower on the day at 0.6663 at 07:25 GMT.

Price action has slipped below 5-DMA and technical indicators are turning bearish.

The pair has retraced break above 200-DMA and daily cloud, breaks below 23.6% Fib.

RSI has turned south and Stochs are on verge of roll back from overbought levels.

A 'Bearish Gartley' pattern on the daily charts keeps scope for weakness. Decisive break below 23.6% Fib eyes 55-EMA at 0.6624.

New Zealand’s business confidence fell further in the June quarter as the general business sentiment fell from -28 to -31, its lowest level in 10 years adding to pressure on the kiwi.

Major trend is bearish. Pullback was capped at 200-DMA. Dip till 61.8% Fib at 0.6578 likely. 

Bearish invalidation only on decisive break above 200-DMA.

Support levels - 0.6624 (55-EMA), 0.6617 (21-EMA), 0.6578 (61.8% Fib)

Resistance levels - 0.6686 (5-DMA), 0.6709 (200-DMA), 0.6733 (Upper BB)

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