FxWirePro: NZD/USD holds 20-DMA support at 0.7261, good to go short on break below

• NZD/USD stalling upward momentum at 78.6% Fib at 0.7342, bias has turned bearish.
   
• The pair capped below 0.73 handle and 5-DMA at 0.7295 is immediate resistance on the upside.
   
• FOMC minutes from the June FOMC meeting showed a Committee that is more divided than the markets expected on the timing of the balance sheet adjustment.
   
• However, consensus still remained on the path of rate hikes.
   
• Technical indicators biased lower, bearish divergence from price action seen on RSI and Stochs.
   
• NZ Global dairy prices continued to moderate, down for second straight auction, also adding to downside pressure.
   
• Close below 20-DMA at 0.7261 likely to see further downside, test of 61.8% Fib at 0.7230 then likely.
   
• Focus on US macro news, including the key ADP jobs and ISM services data, which will provide fresh cues on the USD dynamics.
   

Support levels - 0.7261 (20-DMA), 0.7230 (61.8% Fib of 0.7485 to 0.6817 fall), 0.7206 (June 21 low)

Resistance levels - 0.7295 (5-DMA), 0.7342 (78.6% Fib), 0.7375 (Feb 7th high)

Recommendation: Watch out for break below 20-DMA to go short, SL: 0.73, TP: 0.7230/ 0.72/ 0.7170

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -112.294 (Bearish), while Hourly USD Spot Index was at 110.945 (Bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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