- 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.
