- NZD/USD fails at major resistance at 0.7055 (converged trendline and 100-DMA).
- The pair has slipped below 38.2% Fibo 0.7375 to 0.6818 fall at 0.7030 and is trading at 0.7022 levels.
- Somewhat less bullish comments from St. Louis Fed President Bullard could keep downside in the pair in check.
- Fed’s Bullard said US macro data have been relatively weak, on balance, since March rate hike.
Support levels - 0.6990 (cloud base), 0.6966 (50-DMA), 0.6928 (20-DMA), 0.6817 (May 11 low)
Resistance levels - 0.7030 (38.2% Fib of 0.7375 to 0.6818 fall), 0.7055 (100-DMA), 0.7096 (50% Fib), 0.7110 (200-DMA)
Recommendation: Good to go short on rallies around 0.7030/40, SL: 0.7090, TP: 0.6990/ 0.6930/ 0.69
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 166.95 (Bullish), while Hourly USD Spot Index was at 39.4077 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
