- NZD/USD hovers around 20-DMA at 0.7323. Break below will see further drag.
- The pair extending downside for 4th consecutive session after rejection at major trendline resistance.
- Violation at 20-DMA could see further weakness. Scope then for test of 23.6% Fib at 0.7281.
- On the flipside, 5-DMA at 0.7370 is immediate resistance. Retrace and close above could see retest of trendline at 0.7435.
- Focus on NZ Retail Sales figures (Thursday), US Markit PMI Composite (today 14:45 GMT, followed by the FOMC Minutes.
Support levels - 0.7323 (20-DMA), 0.73, 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.7378 (5-DMA), 0.74, 0.7435 (trendline)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-5-DMA-on-track-to-test-20-DMA-at-07323-1157803) is progressing well.
Recommendation: Watch for breach at 20-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 87.6115 (Bullish), while Hourly USD Spot Index was at 92.7317 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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