FxWirePro: NZD/USD breaks below 200-DMA, hits fresh 5-month lows at 0.7161

• NZD/USD has slipped below 200-DMA at 0.7183, intraday bias lower.
   
• Technical indicators support downside in the pair. RSI shows weakness below 50 levels and Stochs are biased lower.
   
• We see -ve DMI dominance and MACD is showing a bearish crossover on signal line.
   
• The major is trading in a 'Rising Triangle' pattern and close below 200-DMA raises scope for test of 100-DMA at 0.7126.
   
• Violation at 100-DMA will the pair lower to test next major support at 0.7030 (converged trendline and 61.8% Fib).
   
• On the flipside, retrace and close above 200-DMA could see test of 20-DMA at 0.7262.
   
• Focus on FOMC and RBNZ policy meetings for further impetus.

Support levels - 0.7126 (100-DMA), 0.71, 0.7030 (converged trendline and 61.8% Fib)

Resistance levels - 0.7183 (200-DMA), 0.72, 0.7262 (20-DMA)

Recommendation: Watch out for decisive close below 200-DMA for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -149.718 (Bearish), while Hourly USD Spot Index was at 49.4394 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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