Kiwi was heavily offered versus its American counterpart in the European morning, as markets continued to digest the latest disappointing Chinese manufacturing PMI data.
- NZD/USD tested lows near 0.6255 levels, has pared some of the losses on the day and is currently trading at 0.6277
- Resistance on the upside is located at 0.6301 (Today's High), above which it could extend gains to 0.6392 (Sept 21 High)
- To the downside immediate support might be located at 0.6241 (Sept 7 Low) below that 0.6200 (2009 Levels)
- Long-term downtrend is intact, but a short-term bounce could ensue
- Strong trend line support seen at 0.6255, NZD/USD has bounced off the support, Stochs on 4-hourlies are at oversold, on the verge of a bullish crossover
Recommendation: Good to buy dips around 0.6260, SL: 0.6240, TP: 0.6295.
