FxWirePro: NZD/USD slips below 5-DMA, scope builds for downside

• Sentiment around the antipodeans dented after poor Chinese manufacturing PMI data.
   
• China's January 207 Caixin manufacturing PMI came at 51.0 vs 51.8 expected and 51.9 last.
   
• NZD/USD rejected at major channel top resistance at 0.7350, scope builds for downside in the pair.
   
• Price action slips below 5-DMA, on track to test 20-DMA at 0.7189. Violation at 20-DMA raises scope for test of 200-DMA at0.7108.
   
• Technicals studies are bearishly aligned, Stochs show a rollover from o/b, RSI is biased lower. MACD is on verge of a bearish crossover. 
   

Support levels - 0.7240 (double bottom Sept 15, Feb 1), 0.72, 0.7189 (20-DMA), 0.7108 (200-DMA)

Resistance levels - 0.7286 (5-DMA), 0.7345 (trendline), 0.7350 (Jan 31 low)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Neutral               Neutral        
1W         Bullish                Neutral        

Recommendation: Good to go short on close below 5-DMA at 0.7286, SL: 0.7350, TP: 0.7250, 0.72/ 0.7175

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -121.195(Highly bearish), while Hourly USD Spot Index was at -32.9275 (Neutral) at 0710 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.