FxWirePro: NZD/USD hits fresh 2-year lows, holds minor support at 0.66879, weakness to resume on break below

• 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.