- NZD/USD fails to hold break above 5-DMA, slips lower from session highs at 0.7255 to currently trade at 0.7231.
- Technical studies are heavily bearish. We see scope for test of 100-DMA at 0.7174 on break below 0.72 handle.
- 50-DMA currently at 0.7328 weighs heavily on the upside. We see reversal only on decisive break above.
- Technical studies on weekly charts are bearish, RSI and Stochs are biased lower, MACD is no verge of bearish crossover on signal line.
- Break below 100-DMA at 0.7174 could see drag till 0.71 levels (61.8% Fib retrace of 0.68176 to 0.7558 rally).
Support levels - 0.72, 0.7174 (100-DMA), 0.7128 (200-DMA)
Resistance levels - 0.7275 (38.2% Fib), 0.73, 0.7328 (50-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-major-support-at-07250-good-to-go-short-on-rallies-864803) has hit TP1.
Recommendation: Bias lower. Hold for targets.
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