- 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.
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.
