FxWirePro: NZD/USD slips below 0.71 handle, hits 4-month lows at 0.7091, bias lower

• NZD/USD extends break below 200-DMA, hits 4-month lows at 0.7091.
   
• Broad-based USD strength on hawkish Fed chat and positive US data keeps the pair dented.
   
• Technical studies still bearish, next bear target lies at 0.7075 (falling trendline).
   
• Breach at trendline support could see further downside, scope then for test of 78.6% Fib at 0.6976.
   
• On the upside, 5-DMA at 0.7146 is immediate resistance. We see bearish invalidation only above 200-DMA at 0.7155.

Support levels - 0.7075 (trendline), 0.7057 (June 1 low), 0.70, 0.6976 (78.6% Fib retracement of 0.68176 to 0.75580 rally)

Resistance levels - 0.7146 (5-DMA), 0.7155 (200-DMA), 0.72, 0.7235 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-200-DMA-support-07155-weakness-only-on-break-below-936075) has hit TP1.

Recommendation: Bias lower, stay short.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -41.3399 (Neutral), while Hourly USD Spot Index was at 90.6708 (Bullish) at 0610 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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