FxWirePro: NZD/USD breaks strong trendline support, good to sell rallies
GDT price index came in at -2.8% vs -7.4% prior, down for the 4th consecutive time, furthering downside in NZD/USD. RBNZ's quarterly inflation expectations survey showed the outlook for inflation on a 2-year horizon slow…
GDT price index came in at -2.8% vs -7.4% prior, down for the 4th consecutive time, furthering downside in NZD/USD.
RBNZ's quarterly inflation expectations survey showed the outlook for inflation on a 2-year horizon slowed sharply to 1.63% from 1.85%, the lowest level since 1994.
On the technical side, the pair has broken strong trendline support at 0.6585 in Tuesday's trade.
Momentum indicators are biased lower, Stochs has crossover from overbought levels and RSI points south.
Histogram on the MACD has slipped below zero and the MACD line is on the verge of a bearish crossover below signal line.
0.6548 (50% fib of 0.6347 to 0.6750 rise) is initial support on the downside ahead of 0.6506 (Feb 3rd lows).
Immediate resistance is seen at 0.66 (38.2% fib of 0.6347 to 0.6750 rise) and then at 0.6659 (Feb 8th highs).
Recommendation: Good to sell rallies around 0.6580, SL: 0.6660, TP: 0.65/0.6450
