FxWirePro: FxWirePro: NZD/USD breaks below 20-DMA, bias lower, stay short

• NZD/USD has shown a decisive break below 20-DMA and has hit multi-week lows of 0.7225.
   
• Kiwi came under selling pressure after data showed New Zealand electronic card retail sales remained flat on a sequential basis missing expectations of a 0.8% growth.
   
• On the other side, modest uptick in the US Treasury bond yields is supporting the USD.
   
• JOLTS Job Openings and Final Wholesale Inventories from the US would now be looked upon for some fresh trading impetus.
   
• Focus also on Fed Chair Janet Yellen's testimony due Wednesday and Thursday.
   
• Technical indicators are biased lower, scope for further downside, 0.72 next immediate bear target.
   

Support levels - 0.72, 0.7170 (June 12 lows), 0.7098 (200-DMA)

Resistance levels - 0.7269 (converged 5&20 DMA), 0.73, 0.7342 (78.6% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-struggles-at-5-DMA-bias-lower-stay-short-793942) has hit TP1.

Recommendation: Book partial profits at lows, lower stop loss to 0.7269, hold for 0.72/ 0.7170.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -128.77 (Bearish), while Hourly USD Spot Index was at 66.625 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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