- NZD/USD hits fresh 6-month lows at 0.6881, currently pares some losses to trade around 0.6890.
- The major is currently holding minor support at May 19th lows at 0.6881. Break below finds next major support at 0.6817 (May 11th lows).
- Technical studies are heavily bearish. We see -ve DMI dominance and ADX is above 25 levels and rising.
- Momentum studies bearish, RSI and Stochs biased lower. MACD supports downtrend.
- Kiwi continues to remain under pressure, is likely to extend weakness in the wake of the electoral results.
- Focus now on US durable goods and home sales data for further impetus.
Support levels - 0.6817 (May 11 low), 0.68, 0.6716 (61.8% Fib retrace of 0.61968 to 0.7558 rally)
Resistance levels - 0.69, 0.6950 (5-DMA), 0.7038 (38.2% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-consolidates-break-below-070-handle-bias-lower-good-to-short-rallies-963553) has hit TP1.
Recommendation: Bias lower, stay short for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -12.3715 (Neutral), while Hourly USD Spot Index was at 70.5051 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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