FxWirePro: Bearish RSI divergence keeps scope for downside in NZD/USD, short close below 20-DMA at 0.7264

• NZD/USD is currently holding 20-DMA support at 0.7264, we see downside on break below.
   
• Upside trend has stalled near 78.6% Fib retrace of 0.7485 to 0.6817 fall at 0.7342.
   
• Bias on daily charts has turned bearish with turn in 5-DMA and bearish MACD crossover.
   
• Recovery attempts in the pair capped below 0.73 handle and 5-DMA at 0.7284 is immediate resistance on the upside.
   
• Bearish divergence from price action seen on RSI and Stochs also adds to downside bias.
   
• Close below 20-DMA at 0.7264 likely to see further downside, test of 61.8% Fib at 0.7230 then likely.
   
• Focus on US macro news, including the key NFP data, which will provide fresh cues on the USD dynamics.
   

Support levels - 0.7264 (20-DMA), 0.7230 (61.8% Fib of 0.7485 to 0.6817 fall), 0.7206 (June 21 low)

Resistance levels - 0.7285 (5-DMA), 0.7342 (78.6% Fib), 0.7375 (Feb 7th high)

Recommendation: Watch out for break below 20-DMA to go short, SL: 0.73, TP: 0.7230/ 0.72/ 0.7170

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -15.1283 (Neutral), while Hourly USD Spot Index was at -10.9909 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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