NZD/USD chart - Trading View
- NZD/USD has shown a break out of channel trade, breaching channel base support at 0.6715.
- The pair is consolidating break below channel base, is currently trading at 0.6685 at 0440 GMT.
- Upbeat data overnight from the U.S. buoyed the dollar across the board, weighing on the pair.
- Retail sales surged 1.6 percent last month (beating expectations at 0.9 percent), the biggest increase since Sept 2017 and followed an unrevised 0.2 percent drop in Feb.
- Initial claims for state unemployment benefits dropped 5,000 to a seasonally adjusted 192,000 for the week ended April 13, the lowest level since September 1969.
- Technical studies support weakness. Price action below cloud and major moving averages.
- Scope for weakness till 61.8% Fib at 0.6632 and then 0.6585 (Dec 31st low).
- Retrace above 200-DMA will see upside till 21-EMA. Breakout at 21-EMA negates bearish bias.
Support levels - 0.6632 (61.8% Fib), 0.66, 0.6585 (Dec 31st low)
Resistance levels - 0.6696 (50% Fib), 0.6731 (200-DMA), 0.6760 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-holds-support-at-channel-base-good-to-go-short-on-break-below-1526960) has hit TP1.
Recommendation: Book partial profits at lows, hold for further weakness.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
