FxWirePro: NZD/USD recovery fails shy of 0.73 handle, break below 20-DMA at 0.7258 could see weakness

• NZD/USD recovery attempts fail shy of 0.73 handle, pair slips lower to currently trade at 0.7285.
   
• NZ Global dairy prices continued to moderate, slip for second straight auction.
   
• GDT Price Index dipped 0.4 percent, with an average selling price of $3,303 per tonne.
   
• Upside in the pair capped at 5-DMA at 0.7299, Doji formation seen on daily candle.
   
• Bearish divergences on RSI and Stochs are keeping scope for downside correction in the major.
   
• Close below 20-DMA at 0.7258 likely to see further downside, test of 61.8% Fib at 0.7230 then likely.
   
• Focus on FOMC minutes due later in the US session amidst an otherwise lacklustre market.
   

Support levels - 0.7258 (20-DMA), 0.7230 (61.8% Fib of 0.7485 to 0.6817 fall), 0.7206 (June 21 low)

Resistance levels - 0.73 (5-DMA), 0.7342 (78.6% Fib), 0.7375 (Feb 7th high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-struggles-at-786-Fib-upside-only-on-break-above-785519) was not triggered as the pair failed to break above 78.6% Fib.

Recommendation: Watch out for break below 20-DMA to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -19.33 (Neutral), while Hourly USD Spot Index was at 33.315 (Neutral) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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