- NZD/USD recovery capped below 23.6% Fib retrace of 0.6780 to 0.7435 rally at 0.7281.
- The pair is trading 0.27% lower on the day at 0.7220. Price action has dipped into daily cloud, bias bearish.
- 200-DMA is strong support at 0.7177, we see further weakness only on break below.
- Technical indicators still support downside in the pair. We see bearish divergence from price action on RSI and Stochs which keeps scope for downside.
- Break below 200-DMA raises scope then for test of 0.7030 (61.8% Fib).
- On the upside, the pair finds strong resistance at 20-DMA at 0.7293, break above could invalidate bearish bias.
Support levels - 0.72, 0.7185 (38.2% Fib retrace of 0.6780 to 0.7435 rally), 0.7177 (200-DMA)
Resistance levels - 0.7230 (5-DMA), 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally), 0.7293 (20-DMA), 0.73
Recommendation: We prefer to wait for clear directional bias.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
