- NZD/USD extends weakness, slips further below 5-DMA, trades 0.37% lower on the day.
- Kiwi largely ignores rise in GDT price at the auction overnight. The GDT price index increased 2.7 percent from the previous auction.
- Also, expectations for a rise in the country’s consumer price inflation (CPI) for the first quarter of this year, seem to provide no support.
- The major is on track to test 0.73 levels, intraday bias is bearish. Technical indicators are turning bearish.
- 21-EMA at 0.7305 is immediate support. Break below will see further weakness.
- On the flipside, 5-DMA at 0.7349 is immediate resistance, break above could see some upside.
Support levels - 0.7305 (21-EMA), 0.7285 (50-DMA), 0.7261 (61.8% Fib)
Resistance levels - 0.7349 (5-DMA), 0.7391 (78.6% Fib), 0.74
Recommendation: Good to go short on rallies around 0.7320/30, SL: 0.7375, TP: 0.73/ 0.7285/ 0.7260
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -83.3055 (Bearish), while Hourly USD Spot Index was at 48.496 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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