- NZD/USD extends decline for 2nd consecutive day after upside was rejected at 0.73 handle.
- The Reserve Bank of New Zealand (RBNZ) Change in governance keeping the kiwi subdued.
- The RBNZ is projected to stand pat on interest rates well into 2019 as the central bank watches for signs of improving activity.
- With no major economic releases from New Zealand, the major remains to be driven by market sentiment.
- Focus now on US GDP and the PCE releases, which may influence the Federal Reserve in the rate hike projection.
- US GDP figures are forecast to come in at 2.7% versus the previous 2.6%. Any upside surprise could boost US dollar driving the pair lower.
- We see immediate support at 5-DMA at 0.7253, decisive close below will see some downside.
- Scope for test of 200-DMA at 0.7184. Only violation at 200-DMA will see major downside.
Support levels - 0.7253 (5-DMA), 0.7237 (1H 200-SMA), 0.7213 (200W-SMA), 0.7184 (200-DMA)
Resistance levels - 0.7281 (23.6% Fib), 0.73, 0.7354 (Mar 14 high)
Recommendation: Watch out for close below 5-DMA to go short, SL: 0.73, TP: 0.7215/ 0.7185/ 0.7140
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 62.9805 (Neutral), while Hourly USD Spot Index was at 70.2093 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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