- NZD/USD down 0.22% on the day, extends downside for 2nd consecutive session.
- Selling pressure seen around the NZD gathered steam in Asia, Dismal Chinese industrial profits data and NZ Q3 retail sales report weigh.
- Modest recovery in USD after last week’s slump also adding to the weight on the spot.
- Technical studies are bearish, upside remains capped at 20-DMA at 0.6884.
- Heading into a new week, the focus remains on the Fedspeaks, RBNZ Financial Stability Report and US GDP numbers for further direction.
- Close below 5-DMA could see test of 61.8% Fib at 0.68 ahead of 0.6760 (trendline).
- On the flipside, breakout above 20-DMA could see further upside, test of 50-DMA at 0.7023 then likely.
Support levels - 0.6809 (61.8% Fib retrace of 0.6347 to 0.7558 rally), 0.6780 (Nov 17 low), 0.6760 (trendline)
Resistance levels - 0.6867 (5-DMA), 0.6884 (20-DMA), 0.6952 (50% Fib), 0.6980 (Nov 9 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -144.55 (Bearish), while Hourly USD Spot Index was at -81.3178 (Bearish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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