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FxWirePro: NZD/USD rangebound, price action rejected at cloud top

NZD/USD trades largely range-bound on the day after price action was rejected at cloud top by 0.6616.

  • Markets seem to have intensified expectations for the RBNZ to cut OCR this year, following a slump in NZ business confidence and inflation expectations. 
     
  • Doji formation seen on Monday's candle, pair faded minor-recovery attempts today and currently trades at 0.6598.
     
  • Downside in the pair looks vulnerable, we had recommended shorting rallies.
     
  • Immediate resistance on the upside is seen at 0.6615 (Cloud top), and then at 0.6637 (5-DMA). Bearish invalidation only on breaks above 200-DMA at 0.6645.
     
  • On the downside 0.6565 is strong support (Double bottom Feb 29th and Feb 19th), and then 0.6553 (Feb 17th lows).
     

Recommendation: Hold earlier call (http://www.econotimes.com/FxWirePro-Huge-gap-down-open-in-NZD-USD-downside-vulnerable-169183) for targets.

 

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