NZD/USD chart on Trading View used for analysis
- NZD/USD extends weakness below 0.65 mark to hit new 2-1/2 year lows at 0.6462, bias still bearish.
- The pair trades with a major bearish bias, momentum indicators highly bearish.
- Price action has closed below 20-DMA and Bollinger Bands are widening suggesting rise in volatility.
- The major is extending drag in a sloping channel pattern and we see scope for weakness till channel base at 0.6370.
- Focus on the US NFP data for further impetus. Expectations for a stronger NFP report keep downside pressure.
- Markets expect a healthy non-farm payrolls print today following the ADP report and strong ISM services data.
- US labor market is forecast to have produced 188,000 new jobs in September (risk is for a stronger number).
Support levels - 0.64, 0.6370 (channel base)
Resistance levels - 0.6534 (5-DMA), 0.6585 (20-DMA), 0.66
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-rejected-at-daily-cloud-dip-till-06480-likely-stay-short-on-upticks-1437262) has hit all targets.
Recommendation: Book partial profits at lows. Trail SL to 0.6540, target 0.64/ 0.6370.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -115.51 (Bearish), while Hourly USD Spot Index was at 56.8136 (Neutral) at 0645 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
