- NZD/USD extends weakness below 0.71 handle, hit fresh multi-week lows at 0.7057.
- Kiwi bears firmly in control, scope for test of 61.8% Fib at 0.7031.
- Sell-off in the pair continues after break below major supports - Triangle Base and 200-DMA.
- Technical analysis is biased bearish. The pair has broken below daily cloud. RSI below 50, bias lower, Stochs sharply lower.
- Focus now on New Zealand Trade Balance figures due Thursday for further impetus. A big beat on expectations could give the pair some boost.
- Next major bear target lies at 61.8% Fib at 0.7031. Break below will see further weakness.
- On the flipside, break above 200-DMA could negate bearish bias.
Support levels - 0.7031 (61.8% Fib), 0.70, 0.6954 (Dec 20 low)
Resistance levels - 0.7108 (50% Fib), 0.7120 (5-DMA), 0.7180 (200-DMA), 0.72
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-200-DMA-eyes-618-Fibos-at-07031-stay-short-1269595) has hit TP1/2.
Recommendation: Book partial profits at lows. Hold for further weakness.
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