NZD/USD chart on Trading View used for analysis
- Kiwi resumes downside after brief pause on Monday's trade, bias bearish.
- NZD/USD is trading 0.38% lower on the day at 0.6429 at the time of writing.
- Upside on the day remains capped at 5-DMA, close above could see minor upside.
- Price action grinds lower in sloping channel. Technical studies support further weakness.
- Scope for test of channel base at 0.6370. Violation there could see further weakness.
- Focus on US September CPI inflation data for further impetus. Upbeat data could add downside pressure on the pair.
- Analysts at Nomura forecast 0.2% (0.244%) m/m increase in core CPI following a 0.082% advance in August.
Support levels - 0.64, 0.6370 (channel base)
Resistance levels - 0.6462 (5-DMA), 0.6558 (21-EMA), 0.66
Recommendation: Good to go short on upticks, SL to 0.65, target 0.64/ 0.6370.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -45.9053 (Neutral), while Hourly USD Spot Index was at 27.8045 (Neutral) at 0600 GMT.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-recovery-lacks-traction-good-to-go-short-on-rallies-1439708) is progressing well.
Recommendation: Stay short for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -85.5739 (Bearish), while Hourly USD Spot Index was at 121.157 (Bullish) at 1245 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
