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FxWirePro: NZD/USD hits new 3-month lows at 0.7092, on track to test 61.8% Fib at 0.7031, stay short

  • NZD/USD bears firmly in control, pair slips below 0.71 handle to hit fresh 3-month lows at 0.7092.
     
  • Sell-off in the pair continues after break below major supports - Triangle Base and 200-DMA.
     
  • Technical analysis is biased bearish. The pair has broken below daily cloud. RSI below 50, bias lower, Stochs sharply lower.
     
  • Treasury yields continue to drive the Greenback higher. Focus now shall be on New Zealand Trade Balance figures due Thursday for further impetus.
     
  • The major has slipped below 50% Fib and is on track to test 61.8% Fib at 0.7031. Break below will see further weakness.
     
  • On the flipside, break above daily cloud negates bearish bias.

Support levels - 0.7108 (50% Fib), 0.7073 (Jan 3 low), 0.7031 (61.8% Fib)

Resistance levels - 0.7183 (200-DMA), 0.72, 0.7212 (5-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1265617) has hit all targets.

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.

Recommendation: Hold for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -134.84 (Bearish), while Hourly USD Spot Index was at 156.379 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.

 

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