FxWirePro: NZD/USD extends gains from 6-month lows, Kiwi ignores drop in GDT index

• NZD/USD halts 5 consecutive sessions of downside, corrects higher from 6-month lows.
   
• 0.5% drop in GDT index had muted reaction on the Kiwi, NZD/USD up 0.35% at the time of writing.
   
• The GDT index posts first negative result since the beginning of October and ended a run of four straight increases.
   
• We see no concrete signs of reversal in trend, which largely remains to the downside.
   
• But we evidence hammer formation at lows, which could support further correction.
   
• The pair has also retraced the drop below 50% Fib at 0.6916 and is on track to takeout 5-DMA at 0.6957.
   
• Support levels - 0.6916 (50% Fib of 0.6347 to 0.74854 rally), 0.6892 (June 7 low), 0.68, 0.6781 (61.8% Fib)
   
• Resistance levels - 0.70, 0.7050 (38.2% Fib), 0.6994 (5-DMA), 0.7069 (200-DMA)
   
• Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-holds-minor-support-at-06955-break-below-will-see-further-downside-456760) has achieved all targets.
   

Recommendation: Watchout for close above 5-DMA to initiate long trade.
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FxWirePro's Hourly NZD Spot Index was at -28.0642 (Neutral), while Hourly USD Spot Index was at 62.6654 (Neutral) at 0230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.