- NZD on the defensive on dampening data for the New Zealand economy, NZD/USD slips below 0.69 handle.
- US Treasury yields continue their unstoppable advance, with the 10-year note yield up to 3.08%, keeping the dollar supported.
- The major has broken strong support at 0.69 (major trendline and psychological level) to hit fresh 2018 lows at 0.6851.
- Momentum studies are bearish, RSI below 30 levels and we see -ve DMI dominance. Weekly charts also show bearish bias.
- Break below strong support at 0.69 will accentuate weakness. Scope now for test of 0.6780 (Nov 17 low) ahead of 61.8% Fib at 0.6716.
- On the flipside, retrace above 0.69 handle will find next major resistance at 21-EMA at 0.7030. Minor bullishness on break above.
Support levels - 0.68, 0.6780 (Nov 17 low), 0.6716 (61.8% Fib)
Resistance levels - 0.69 (trendline), 0.6914 (5-DMA), 0.70, 0.7030 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-finds-strong-support-at-06972-stay-short-on-decisive-break-below-1297397) has hit all targets.
Recommendation: Good to go short on rallies around 0.6875/85, SL: 0.6920
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