FxWirePro: Huge gap down open in NZD/USD, downside vulnerable
NZD/USD saw a huge bearish gap down open (almost 40-pips) in Asian trade today, sharp decline in the Chinese stocks weighed on the sentiment. The pair faded minor-recovery attempts, currently trading in the red with a Do…
NZD/USD saw a huge bearish gap down open (almost 40-pips) in Asian trade today, sharp decline in the Chinese stocks weighed on the sentiment.
The pair faded minor-recovery attempts, currently trading in the red with a Doji formation, day's range 0.66/0.6565.
Data released aerly today showed NZ confidence and building consents deteriorated significantly bolstering the case for more RBNZ easing in the upcoming month.
Downside in the pair looks vulnerable, tests of 0.65 levels likely, shorting rallies will be recommended.
Immediate resistance on the upside is seen at 0.66 (Session high ), and then at 0.6638 (10-DMA). Bearish invalidation only on breaks above 200-DMA at 0.6648.
On the downside 0.6565 is strong support (session lows and Feb 19th lows), and then 0.6553 (Feb 17th lows).
Recommendation: Good to sell rallies around 0.660, SL: 0.6650, TP: 0.6550/0.65
