FxWirePro: NZD/USD hits 2-year lows at 0.6768, breach at channel base suggests more downside

• NZD/USD extending weakness after dovish RBNZ, hits 2-year lows at 0.6768, bias remains bearish.
   
• Kiwi remains under pressure after the Reserve Bank of New Zealand (RBNZ) kept the overnight cash rate (OCR) unchanged at 1.75 percent.
   
• The RBNZ statement has a more dovish bias with the central bank also hinting readiness to act if conditions sway from its expected path.
   
• The major has breached major support at channel base which has opened up scope for further downside.
   
• Other technical indicators also support further downside in the pair.
   
• Next major support aligns at 61.8% Fib at 0.6716 ahead of 0.6675 (May 2016 low).
   
• On the flipside, retrace and close above channel base for the week will negate bearish bias.

Support levels - 0.6716 (61.8% Fib retrace of 0.6196 to 0.7558 rally), 0.6675 (May 2016 low), 0.66

Resistance levels - 0.68, 0.6843 (5-DMA), 0.6870 (channel base)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-fails-to-hold-break-above-5-DMA-good-to-short-break-below-06865-1388906) has hit all targets. 

Recommendation: Good to go short on upticks around 0.6770/80, SL: 0.6843, TP: 0.6820/ 0.67/ 0.6675

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -94.2871  (Bearish), while Hourly USD Spot Index was at 123.844  (Bullish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.