- NZD/USD hits fresh 2-year lows at 0.66879 before paring losses to retake 0.67 handle.
- The pair has taken support at 0.66879 which is strong trendline and May 31, 2016 low.
- Price has shown a breach at channel base in last week's trade and we see scope for downside on bearish technical analysis.
- Break below 0.66879 will see resumption of weakness. Scope then for test of 0.6675 (May 2016 low).
- On the hourly charts, the pair is struggling at 1H 21-EMA at 0.6715. Break above could see test of 1H 55-EMA at 0.6739.
- Major trend remains bearish and close above 5-DMA at 0.6752 could see minor upside.
Support levels - 0.6688 (trendline and May 31, 2016 low), 0.6675 (May 2016 low), 0.66
Resistance levels - 0.6716 (61.8% Fib retrace of 0.6196 to 0.7558 rally), 0.6751 (5-DMA), 0.68
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-hits-2-year-lows-at-06768-breach-at-channel-base-suggests-more-downside-1394012) has hit TP1/2.
Recommendation: Book partial profits at lows. Watch out for break below 0.6687 for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -71.0116 (Neutral), while Hourly USD Spot Index was at -52.8041 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
