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FxWirePro: NZD/USD finds minor support at 0.6680, bias lower, on track to test 200-DMA

  • NZD/USD downside intact, pair likely to test 200-DMA at 0.6650. Break below could accentuate weakness.
     
  • US dollar to keep upbeat momentum post hawkish Yellen comments which raised Fed rate hike bets. 
     
  • On the other hand, commodities struggling to keep upside momentum, denting scope for upside in the Kiwi.
     
  • Technically the pair finds minor support by trendline at 0.6680, break below will see test of 200-DMA at 0.6650.
     
  • Break below 200-DMA could accentuate weakness, raises scope for test of next major support by 0.6485 (trendline).
     
  • On the NZ calendar we have: business confidence (ANZ,Tue), as well as a growth gauge (also contains inflation expectations components), the GDT dairy auction is on Wed.
     
  • The US calendar is more important, May non-farm payrolls on Fri posing downside risks for the US dollar. 

Recommendation: Good to short break below 0.6680, SL: 0.6740, TP: 0.6650/0.66/0.6575
 

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