FxWirePro: NZD/USD recovery fails to hold break above 20-DMA, slips below 50-DMA at 0.7313, bias lower

• NZD/USD has breached 50-DMA support at 0.7313 after recovery in the pair was rejected at highs. 
   
• The pair has failed to hold break above 20-DMA, slips lower to currently trade around 0.73 handle.
   
• RBNZ this morning kept the OCR on hold at 1.75%, as was widely expected and kept OCR forecast unchanged.
   
• Markets initially perceived the statement was less dovish than expected, which caused the initial spike in the Kiwi.
   
• RBNZ’s Wheeler's statements weighing on the bird. Wheeler, while speaking in parliament, said the central bank would like to see a lower NZD, keeps intervention option open.
   
• NZD/USD reversed gains, slips below 50-DMA at 0.7313, technical bias bearish.
   
• We note bearish RSI divergence, Stochs and RSI biased lower, bearish MACD crossover seen. 

Support levels - 0.7275 (38.2% Fib retrace of 0.68176 to 0.7558 rally), 0.7250 (cloud top), 0.72

Resistance levels - 0.7313 (50-DMA), 0.7349 (5-DMA), 0.7383 (23.6% Fib)

Call update: We had advised a short on break below 50-DMA (http://www.econotimes.com/FxWirePro-NZD-USD-takes-50-DMA-support-at-07308-break-below-will-see-further-weakness-844297). 

Recommendation: Stay short for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was -174.07 (Bearish), while Hourly USD Spot Index was at 58.0262 (Neutral) at 0320 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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