NZD/USD struggles below 0.67 handle, further downside likely, good to sell rallies

 

• The New Zealand dollar edged down to 0.6609, from a one-month peak of 0.6787 set on Friday. Gains in the pair were capped at 0.6787 (76.4 % Fibo of Fib of Oct-Nov slide). 
   
• The pair is on the day struggling at the 0.67 handle. Breaks below cloud top support at 0.6667 could take the pair to 0.6650 (daily Tenkan) and further below to 0.66 levels. 
   
• Resistance was found around 0.6787 (76.4 % Fibo of Fib of Oct-Nov slide) ahead of 0.6800 (Oct 26 high). 
   
• Stochs are at overbought and show a bearish crossover, RSI is also biased lower. We see further downside in the pair and recommend selling rallies.
   

Recommendation: Good to sell rallies around 0.6720, SL: 0.06790, TP1: 0.6670, TP2: 0.6600