FxWirePro: NZD/USD edges lower from session highs at 0.6750, good to sell rallies
Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session. Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessio…
Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session.
Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessions of gains.
Technicals indicated downside for the pair:
- We see divergence between price action and momentum indicators - Stochastics and RSI - Stochs have rolled over from overbought levels with a bearish crossover - RSI is biased lower
Chinese CPI figures and the RBNZ policy decision due later this week will have a major impact on the pair.
Higher-yielding currencies like the Kiwi to struggle as sentiment remains weak and oil is seeing renewed downside.
We see the pair test trendline support at 0.6635 and further weakness could see 0.6565 levels.
Supports on the downside are aligned at 0.6713 (Mar 4th lows), 0.6700, 0.6630 (rising trendline).
On the upside resistances are seen at 0.6750 (session highs), 0.6756 (Mar 3rd high), 0.6775 (Feb 26th high).
Recommendation: Sell rallies around 0.6735/40, SL: 0.6820, TP: 0.67/0.6655/0.66
