- NZD/USD hovers around 20-DMA at 0.7320, decisive close above could see minor upside.
- The pair has bounced off strong trendline support at 0.7275, break below required for further weakness.
- The pair has retraced dip below 0.73 handle and is currently trading at 0.7337 levels.
- With a light showing data-wise this week, focus will remain on UST yields and Fed talk for further impetus.
- Technical studies have turned bearish. RSI and Stochs are biased lower. Violation at 0.7275 (trendline) could see test of cloud top at 0.7185.
- On the flipside, 20-DMA at 0.7320 is strong resistance. Retrace and close above could see retest of trendline at 0.7435.
Support levels - 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally), 0.7275 (trendline), 0.7185 (38.2% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.74, 0.7435 (Major trendline)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-5-DMA-on-track-to-test-20-DMA-at-07323-1157803) has hit all targets.
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -118.393 (Bearish), while Hourly USD Spot Index was at 46.912 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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