- NZD/USD is trading a narrow range below 0.71 handle, bias still bearish.
- Kiwi faces dented from weak New Zealand trade balance which printed a surprise -$86 million decline, as opposed to the $270 million surplus that was expected.
- The major hit fresh 4-month lows at 0.7050 following weak China Industrial Profits data.
- Chinese industrial profits, increased by only 3.1% Y/Y, compared to the previous reading of 10.8%.
- Bears firmly in control, recovery in the pair was rejected at session highs at 0.7095 on Thursday's trade.
- Technical analysis is biased bearish. Next major bear target lies at 61.8% Fib at 0.7031. Break below will see further weakness.
- Focus now on US GDP data. A big beat on expectations could see further weakness in the pair.
- On the flipside, break above 200-DMA could negate bearish bias.
Support levels - 0.7031 (61.8% Fib), 0.70, 0.6954 (Dec 20 low)
Resistance levels - 0.7090 (5-DMA), 0.7108 (50% Fib), 0.7179 (200-DMA), 0.72
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-200-DMA-eyes-618-Fibos-at-07031-stay-short-1269595) has hit TP1/2.
Recommendation: Bias bearish. Stay short.
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