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.
