- NZD/USD rejected at highs, retraces brief break above 5-DMA at 0.6966, currently trades at 0.6954 levels.
- Momentum studies are bearish, RSI below 30 levels and we see -ve DMI dominance.
- Kiwi trades muted ahead of the New Zealand government budget later this week.
- The Reserve Bank of New Zealand (RBNZ) has turned dovish in the face of a lopsided New Zealand economy.
- The pair finds strong trendline support at 0.69. Break below will accentuate weakness. Scope then for test of 0.6780 (Nov 17 low).
- On the flipside, 21-EMA at 0.7068 is strong resistance. Minor bullishness on break above.
Support levels - 0.69 (trendline), 0.6780 (Nov 17 low)
Resistance levels - 0.6966 (5-DMA), 0.70. 0.7068 (21-EMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -118.024 (Bearish), while Hourly USD Spot Index was at -15.6627 (Neutral) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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