- 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.
