FxWirePro: NZD/USD breaks below 0.65 handle, hits 2-1/2 year lows, bias lower

NZD/USD chart on Trading View used for analysis 

• NZD/USD extends weakness for the 3rd straight session, trade 0.34% lower on the day.
   
• The major has slipped below 0.65 mark to hit 2-1/2 year lows at 0.6489, bias still bearish.
   
• Greenback buoyed by upbeat Economic data from the US and comments from top U.S. policymakers.
   
• US ISM non-manufacturing activity index jumped 3.1 points to 61.6 last month, the highest reading since August 1997. 
   
• Also, private payrolls rose by 230,000 jobs in Sept, the largest gain since Feb, ADP report showed, after an upwardly revised 168,000 increase in August.
   
• Federal Reserve policymaker Charles Evans said inflation expectations have not gone up as much as he would have liked and he was comfortable with a December interest rate hike. 
   
• Powell on Tuesday hailed a "remarkably positive outlook" for the U.S. economy that he feels is on the verge of a "historically rare" era of ultra-low unemployment and tame prices. 
   
• Price action has closed below 20-DMA and Bollinger Bands are widening suggesting rise in volatility.
   
• The major is extending drag in a sloping channel pattern and we see scope for weakness till channel base at 0.6370.

Support levels - 0.6480 (trendline support), 0.64, 0.6370 (channel base)
Resistance levels - 0.6566 (5-DMA), 0.6589 (20-DMA), 0.66

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-rejected-at-daily-cloud-dip-till-06480-likely-stay-short-on-upticks-1437262) is approaching final targets.

Recommendation: Book partial profits at lows. Trail SL to 0.6590, target 0.64/ 0.6370.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -134.312 (Bearish), while Hourly USD Spot Index was at 96.7484 (Bullish) at 0445 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.