- NZD/USD trades in a narrow range in the Asian session today, bias bearish.
- Kiwi unaffected by solid China data dump, remains depressed below 0.71 handle.
- ANZ's Business Confidence, which decreased to -23.4 (prev. -20), while Activity Outlook also decreased to 17.8% from 20%.
- Bears firmly in control, technical analysis is biased bearish. Upside capped at 5-DMA.
- Next major bear target lies at 61.8% Fib at 0.7031. Break below will see further weakness.
- Break above 5-DMA could see minor upside. Bearish invalidation only above 200-DMA.
Support levels - 0.7039 (Apr 27 low), 0.7031 (61.8% Fib), 0.6954 (Oct 16/ Dec 18 low)
Resistance levels - 0.7082 (5-DMA), 0.71 (trendline), 0.7177 (200-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-200-DMA-eyes-618-Fibos-at-07031-stay-short-1269595) has hit TP1/2.
Recommendation: Stay short. Watch out for break below 61.8% Fib for further weakness.
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