NZD/USD chart on Trading View used for analysis
- Kiwi has paused its week-long losing streak and edged higher to currently trade at 0.6446, up 0.16% on the day.
- NZD/USD failed to capitalise on broader USD weakness on Friday following a softer than anticipated non-farm payroll and earnings print.
- The pair slipped lower on Friday's trade, extending its week and month-long downside.
- Deteriorating NZ consumer and business confidence, a declining terms of trade and a burgeoning yield gap weigh on the Kiwi.
- Price action grinds lower in sloping channel. Technical studies support further weakness.
- Scope for test of channel base at 0.6370. Violation there could see further weakness.
Support levels - 0.64, 0.6370 (channel base)
Resistance levels - 0.6493 (5-DMA), 0.6579 (20-DMA), 0.66
Recommendation: Good to go short on upticks, SL to 0.65, target 0.64/ 0.6370.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -45.9053 (Neutral), while Hourly USD Spot Index was at 27.8045 (Neutral) at 0600 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
