- The Kiwi hit by a dovish Reserve Bank of New Zealand (RBNZ) today. NZD/USD slumps 0.81%.
- RBNZ looks set to hold steady on rates for the foreseeable future. RBNZ Governor Adrian Orr said that the central bank is dedicated to easy monetary policy "for an extended period of time".
- The major has broken strong support at 0.6972 (trendline), and is extending weakness below 38.2% Fib.
- The major is extending weakness for 4th straight week, eyes major trendline support at 0.69 levels.
- Violation at 0.69 will see further weakness. Scope then for test of 61.8% Fib at 0.6768.
- On the flipside, 5-DMA at 0.6981 is immediate resistance. Close above to see minor upside.
Support levels - 0.69 (trendline), 0.6877 (50% Fib), 0.6822 (Dec 8 low)
Resistance levels - 0.6981 (5-DMA), 0.70, 0.7033 (61.8% Fib), 0.71
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-finds-strong-support-at-06972-stay-short-on-decisive-break-below-1297397) has hit TP1.
Recommendation: Book partial profits at lows. Watch out for break below 0.69 for further weakness.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
