FxWirePro: NZD/USD hovers around major trendline support at 0.7058, weakness only on break below

• NZD/USD is trading a narrow range in the Asian session today, bias bearish.
   
• The pair hit fresh four-month lows at 0.7056 in early trades before paring losses to currently hover around 0.7071 levels.
   
• New Zealand electronic card retail sales data came in below markets’ expectations, which added to weakness around the kiwi.
   
• The pair finds strong support at 0.7055-58, we see further weakness on break below.
   
• Breach at trendline support 0.7055 (lower Bollinger Band) will raise scope now for test of 78.6% Fib at 0.6976.
   
• Technical studies still bearish, RSI and Stochs are sharply lower and MACD supports trend lower.
   
• Election-related uncertainty is likely to persist until the composition of the government is announced.
   
• On the flipside, 5-DMA at 0.7101 is immediate resistance, break above could see minor upside till 50% Fibos.

Support levels - 0.70579 (nearly converged June 1 low and Lower BB), 0.70, 0.6976 (78.6% Fib retracement of 0.68176 to 0.75580 rally)

Resistance levels - 0.71 (61.8% Fib), 0.7101 (5-DMA), 0.7157 (200-DMA), 0.72

Recommendation:  Watch out for break below 0.7055 for further weakness. Target 0.70/ 0.6975.

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