NZD/USD holds wedge base support at 0.6720, and edges higher in Monday's trade to close at 0.6749, currently trading a tight 0.6740/57 range in the Asian session.
- Chinese indices were seen recovering after the huge sell-off seen yesterday after massive liquidity injection by the PBoC to the tune of 130bn Yuan in a bid to stabilize the Chinese stock markets.
- The stocks on the Asian bourses reversed early losses and swung back higher, tracking recovery in the Chinese markets, offering some respite to the Asian traders, but NZD largely muted.
- Techs indicate weakness. Rising wedge formation seen on dailies, but volumes are declining and momentum studies are neutral.
- On the weekly charts, Stochs have rolled over from overbought zone with a bearish crossover and RSI is at 50 levels after brief spike above and points south.
- Watchout for 0.6730 levels, pair could see further weakness if it breaks below, tests of 0.6680 and then 0.66 levels likely.
- 0.6730 is the rising trendline and wedge-base support, while immediate resistance is seen at 0.6805 (converged 5&10 DMAs).
