- NZD/USD extends decline for 3rd consecutive day, falls 0.36% on the day.
- The pair hit 2-week lows of 0.7394 before paring some losses to currently trade around 0.74 levels.
- Downbeat NZ jobs data which suggested muted wage pressures likely to keep the kiwi under pressure.
- Technical studies also support downside. Bearish RSI divergence, rollover of Stochs and RSI from overbought levels and sharply lower 5-DMA in support of downside.
- We have no NZ data due for today, but focus shall be on RBA SOMP which could impact the Kiwi's performance.
Support levels - 0.7388 (20-DMA), 0.7333 (July 20 low), 0.73, 0.7284 (50-DMA)
Resistance levels - 0.7458 (July 21 high), 0.7465 (5-DMA), 0.75 (trendline), 0.7558 (July 27 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Kiwi-dented-after-big-miss-in-NZ-employment-change-short-NZD-USD-rallies-833168) has almost hit TP1&2.
Recommendation: Book partial profits at lows. Watch out for break below 20-DMA for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -56.2142 (Neutral), while Hourly USD Spot Index was at 10.5062 (Neutral) at 0200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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