NZD/USD chart on Trading View used for analysis
- NZD/USD extends weakness below 200-DMA, intraday bias bearish.
- The pair remains offered for the fifth straight session, narrowing NZ-US yield spreads weigh.
- Focus now on RBNZ policy meeting (Wednesday) for further impetus.
- The central bank is widely expected to keep interest rates unchanged and adopt a dovish tone.
- Technical indicators support weakness in the pair. Scope for test of next major support at 0.6660 (major trendline).
- Violation there could see test of 61.8% Fib at 0.6632 and then 0.6585 (Jan 3 low).
- We see stiff resistance at 200-DMA at 0.6756. Retrace above could see upside resumption.
Support levels - 0.6696 (50% Fib), 0.6660 (trendline), 0.6632 (61.8% Fib)
Resistance levels - 0.6746 (5-DMA), 0.6756 (200-DMA), 0.6778 (55-EMA)
Recommendation: Good to go short on upticks, SL: 0.6780, TP: 0.6660/ 0.6635
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
