- NZD/USD rejected at highs as the Kiwi fails to sustain the recovery and drops back into the red.
- Recovery-attempt in NZD/USD short-lived as markets continued to assess the impact of the earthquakes.
- Focus remains on the US retail sales and NZ GDT price index data due later on the day for fresh impetus in the pair.
- Technical studies support downside, momentum studies are bearish, pair capped below 5-DMA.
- Major support levels - 0.71, 0.7080 (trendline & 50% Fib), 0.7034 (Oct 13 low)
- Major resistance levels - 0.7145 (5-DMA), 0.7175 (38.2% Fib), 0.7208 (20-DMA)
Recommendation: Good to sell rallies around 0.7110/20, SL: 0.7150, TP: 0.71/ 0.7080/ 0.7035
FxWirePro's Hourly NZD Spot Index was at -100.131 (Bearish), while Hourly USD Spot Index was at 131.471 (Highly Bullish) at 0536 GMT. Currency strength indices also suggest downside for the pair.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
