- NZD/USD recovers from lows of 0.7010 hit on Tuesday, is currently trading at 0.7058.
- The pair finds strong trendline support at 0.7012 levels, weakness now seen only on break below.
- Daily price action was rejected at lows by 0.7020, techs on intraday charts are biased higher. We see scope for test of 2H 50-DMA at 0.7112.
- Momentum studies are neutral, break below 0.7010 could see downside upto 0.6963.
- A 1.9% rise in the whole milk powder prices at the GDT auction and the EU’s latest financial support package for the region's struggling farmers likely cushions downside in the pair.
- Immediate support and resistance are seen at 0.7012 (trendline) and 0.71 respectively.
Recommendation: Go short on break below 0.7010, Sl: 0.71, TP: 0.6950, 0.69, 0.6870
