FxWirePro: NZD/USD recovery lacks traction, good to go short on rallies

NZD/USD chart on Trading View used for analysis

• Kiwi has paused its week-long losing streak and edged higher to currently trade at 0.6446, up 0.16% on the day.
   
• NZD/USD failed to capitalise on broader USD weakness on Friday following a softer than anticipated non-farm payroll and earnings print. 
   
• The pair slipped lower on Friday's trade, extending its week and month-long downside.
   
• Deteriorating NZ consumer and business confidence, a declining terms of trade and a burgeoning yield gap weigh on the Kiwi.
   
• Price action grinds lower in sloping channel. Technical studies support further weakness.
   
• Scope for test of channel base at 0.6370. Violation there could see further weakness.

Support levels - 0.64, 0.6370 (channel base)

Resistance levels - 0.6493 (5-DMA), 0.6579 (20-DMA), 0.66

Recommendation: Good to go short on upticks, SL to 0.65, target 0.64/ 0.6370.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -45.9053 (Neutral), while Hourly USD Spot Index was at 27.8045 (Neutral) at 0600 GMT.

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