- NZD/USD failed to hold above 20-DMA on Thursday's trade, falls below 5-DMA.
- Upside was rejected at major trendline resistance at 0.6940 on Thursday's trade.
- 20-DMA at 0.69 caps upside on the day, we see further bullishness only on breeak above.
- Break below 5-DMA support at 0.6898 raises scope for test of trendline support at 0.6810.
- Bullish divergence from price action seen on RSI and Stochs which keeps downside cushioned.
Support levels - 0.6862 (Dec 23 low), 0.6817 (May 11 low), 0.6810 (trendline)
Resistance levels - 0.6898 (5-DMA), 0.69 (20-DMA), 0.6950 (trendline & 23.6% Fib of 0.7375 to 0.6817 fall)
Recommendation: Good to go short on close below 5-DMA, SL: 0.6950, TP: 0.6860/ 0.6810
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -74.9071 (Slightly Bearish), while Hourly USD Spot Index was at -91.4238 (Bearish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
