FxWirePro: NZD/USD finds strong support at 0.7057, break below to see further weakness

• NZD/USD has hit fresh multi-month lows before paring some losses to currently hover at 0.7075 levels.
   
• The pair has bounced off strong support at 0.7057, we see further weakness on break below.
   
• We have seen breach at trendline support (0.7075), scope now for test of 78.6% Fib at 0.6976.
   
• Technical studies still bearish, RSI and Stochs are sharply lower and MACD supports trend lower.
   
• Election-related uncertainty is likely to persist until the composition of the government is announced.
   
• Focus now on FOMC members Rosengren, Dudley, Kaplan and Bullard speeches for clues regarding a possible rate hike in December.

Support levels - 0.70579 (June 1 low), 0.70, 0.6976 (78.6% Fib retracement of 0.68176 to 0.75580 rally)

Resistance levels - 0.71 (61.8% Fib), 0.7120 (5-DMA), 0.7156 (200-DMA), 0.72

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-200-DMA-support-07155-weakness-only-on-break-below-936075) has hit TP1&2.

Recommendation: Book partial profits at lows. Watch out for break below 0.7057 for further weakness.

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