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FxWirePro: NZD/USD short set-up on 'Bearish Gartley' pattern

NZD/USD chart - Trading View 

NZD/USD trades 0.31% lower on the day at 0.6697 at 06:25 GMT.

The pair fails to hold break above 200-DMA and daily cloud, slips below 0.67 handle.

Technical indicators are turning bearish on the intraday charts. Oscillators are on verge of roll back from overbought levels.

Further, a 'Bearish Gartley' pattern formed on the daily charts keeps scope for weakness.

New Zealand’s Treasury report shows lead activity indicators pose downside risk to near-term growth forecasts keeping pressure on the kiwi.

5-DMA is still biased higher and the pair is holding support at 55H EMA. Break below 5-DMA will see downside extension.

Dip till 61.8% Fib at 0.6578 likely. Bearish invalidation only on decisive break above 200-DMA.

Support levels - 0.6686 (5-DMA), 0.6624 (55-EMA), 0.6578 (61.8% Fib)

Resistance levels - 0.6709 (200-DMA), 0.6732 (Upper BB), 0.6753 (55W EMA)

Recommendation: Good to stay short on close below 200-DMA, SL: 0.6735, TP: 0.6625/ 0.6580

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

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