- NZD/USD is extending downside after break below major trendline support at 0.7250 on Wednesday.
- Kiwi was largely unimpressed by upbeat New Zealand trade balance data released earlier today.
- New Zealand trade balance came in at a surplus of NZ 85m vs the expected deficit of 200m.
- Pre-election jitters may also weigh on the NZD. The pair is currently trading at 0.7215, down 0.12% on the day.
- Technical studies are heavily bearish. We see scope for test of 100-DMA at 0.7168 on break below 0.72 handle.
- 50-DMA currently at 0.7328 weighs heavily on the upside. We see reversal only on decisive break above.
Support levels - 0.72, 0.7168 (100-DMA), 0.7127 (200-DMA)
Resistance levels - 0.7271 (5-DMA), 0.73, 0.7328 (50-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-major-support-at-07250-good-to-go-short-on-rallies-864803) is progressing well.
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -170.776 (Bearish), while Hourly USD Spot Index was at 54.3741 (Neutral) at 0245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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