FxWirePro: NZD/USD hovers around 7-week lows, bias lower, stay short

• NZD/USD sell-off continues amid divergent monetary policy outlooks between the Fed and RBNZ.
   
• Kiwi subdued as NZ Treasury’s monthly economic indicators reported a slightly downbeat assessment of the economy.
   
• Data showed NZ private consumption growth likely moderated in the December 2016 quarter, following strong growth earlier in the year.
   
• Also, reports of North Korea's launch of four ballistic missiles keeps markets unnerved, adding to the downbeat tone behind the higher-yielding NZD.
   
• Technical studies are heavily bearish, we see scope for test of 0.6930 (trendline support). Violation there could see 0.68 levels.
   
• Price action has dipped below daily cloud and has broken below 200-DMA. 

Support levels - 0.70, 0.6972 (78.6% Fib and Nov 24 low), 0.6930 (trendline)

Resistance levels - 0.7087 (cloud base), 0.7091 (5-DMA), 0.7148 (200-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Oversold       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Recommendation: Good to sell rallies around 0.7020/25, SL: 0.7090, target 0.70/ 0.6975/ 0.6930.