FxWirePro: NZD/USD bounces off 55-EMA, bias bearish, break below to test 200-DMA at 0.7147

• Kiwi extended downside after dovish RBNZ on Thursday, NZD/USD hit fresh 4-month lows at 0.7176.
   
• The pair has edged higher from fresh 4-week lows below 0.72 handle, holds support at 55-EMA (0.7175).
   
• Technical studies are bearish, RSI and Stochs sharply lower. We see -ve DMI crossover and MACD supports downside.
   
• We see minor support at 38.2% Fib at 0.7185, break below will see further weakness.
   
• Breach below 55-EMA raises scope for test of 200-DMA at 0.7147. Violation there will see next support at 100-DMA at 0.7069.
   
• On the flipside, close above 5-DMA will see minor upside till 20-DMA at 0.73. Breakout at 20-DMA could negate bearish bias.

Support levels - 0.7185 (38.2% Fib retrace of 0.6780 to 0.7435 rally), 0.7176 (55-EMA), 0.7147 (200-DMA), 0.7069 (100-DMA)

Resistance levels - 0.7255 (5-DMA), 0.7281 (23.6% Fib), 0.73 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-hits-fresh-4-week-lows-below-072-handle-kiwi-dented-as-RBNZ-warns-of-rate-cut-if-inflation-drops-1139920) is progressing well.

Recommendation: Hold for targets.

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