FxWirePro: NZD/USD rejected at daily cloud, dip till 0.6480 likely, stay short on upticks

NZD/USD chart on Trading View used for analysis

• NZD/USD slips below 0.66 handle, we see scope for further weakness.
   
• Kiwi offered after the NZIER quarterly survey of business opinion showed a net 30 percent of firms surveyed expected general business conditions to deteriorate compared with 20 percent in the previous quarter.
   
• The latest reading is the lowest since March 2009 and justifies the Reserve Bank of New Zealand's (RBNZ) dovish tilt. 
   
• Technical indicators have turned bearish. RSI and Stochs are sharply lower. Price action has been rejected at 55-EMA and daily cloud.
   
• MACD is on verge of bearish crossover on signal line and upside is capped at 21-EMA.
   
• We see scope for dip till 0.6480 (trendline support). Bearish invalidation above 55-EMA at 0.6672.

Support levels - 0.6544 (Aug 15 low), 0.65, 0.6480 (trendline support)
Resistance levels - 0.6617 (5-DMA), 0.6672 (55-EMA), 0.67

Recommendation: Good to stay short on upticks around 0.66, SL: 0.6675, TP: 0.6545/ 0.65/ 0.6480

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 19.5283 (Neutral), while Hourly USD Spot Index was at 33.4712 (Neutral) at 1200 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.