- NZD/USD hovers around 200-DMA support in early Asia, we see weakness only on break below.
- Strong economic data in the U.S. ISM Services that was the strongest headline number since 2005 to keep the USD supported.
- ADP report also showed that the U.S. private sector added more jobs than expected in September.
- That said, US dollar still shows some weakness amid uncertainties about the next Fed’s Chair.
- Today focus shall be on U.S. ISM non-manufacturing PMI, followed by Yellen's speech later during the NY trading session.
- Breach of 200-DMA support at 0.7155 will take the pair to 0.71 and then 0.7050 levels.
- On the upside, 5-DMA is immediate resistance, break above could see minor upside. Bearish invalidation only above 20-DMA at 0.7245.
Support levels - 0.7155 (200-DMA), 0.71 (61.8% Fib retracement of 0.68176 to 0.75580 rally), 0.7057 (June 1 low)
Resistance levels - 0.7175 (5-DMA), 0.7245 (20-DMA), 0.7275 (38.2% Fib)
Recommendation: Go short on break below 200-DMA, SL: 0.7175, TP: 0.71/ 0.7060/ 0.7035.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -142.711 (Bearish), while Hourly USD Spot Index was at 105.987 (Bullish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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