NZD/USD chart on Trading View used for analysis
- NZD/USD has failed to hold break above 200-DMA, slips lower to currently trade at 0.6744.
- Antipodeans hit by the latest report that the US-China trade talks could be delayed, in light of the US shutdown.
- The bird largely ignored rise in GDT price index which showed a 4.2 percent rise, marking a two-month winning streak.
- The major could continue to track Chinese yuan and the sentiment in the global stock markets as we approach NZ CPI next week.
- Analysts expect New Zealand CPI to remain flat-line, which along with the recent string of news could disappoint the RBNZ.
- NZD/USD is extending weakness for the 4th straight session. Holds support at 20-DMA at 0.6746.
- Technical indicators on daily charts are turning bearish. RSI has turned and Stochs are on verge of rollover from o/b levels.
- Break below 20-DMA could see weakness till cloud base support at 0.6697. Bearish invalidation only above 200-DMA.
Support levels - 0.6746 (20-DMA), 0.6707 (Jan 8 low), 0.6697 (cloud base), 0.6635 (Trendline)
Resistance levels - 0.6789 (200-DMA), 0.6798 (5-DMA), 0.69 (50% Fib)
Recommendation: Stay short on break below 20-DMA, SL: 0.6790, TP: 0.67/ 0.6640
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
