- NZD/USD bears tighten grip below 0.68 handle, pair hit fresh weekly lows at 0.6770.
- New Zealand Institute of Economic Research (NZIER) Survey of Business Opinion was released earlier today.
- Data showed business confidence dropped in the first quarter of 2016, with a net 1% of businesses expecting a deterioration in the economy in the next six months.
- Short term drivers, such as NZ-US interest rate spreads and commodity prices have in contrast been pointing downside for the pair.
- Technicals on daily charts confirm downside for the pair. Price action has broken below 10-DMA at 0.6797.
- RSI is biased south, Stochs have rolled over from overbought zone and the MACD line is on the verge of a bearish crossover on signal line.
- Immediate resistance is seen at 0.6797 (10-DMA) ahead of 0.68 handle. While supports are located at 0.6720 (Mar 22nd lows) and then 0.6680 (Dec 17th lows).
- Broader market sentiment along with upcoming US data and the Fonterra’s dairy auction results will provide fresh impetus to the pair.
Recommendation: Good to sell rallies around 0.6780/90, SL: 0.6840, TP: 0.6720/0.67/0.6680
