- NZD/USD down 0.05% on the day, pauses downside after 3 consecutive sessions of losses.
- Selling pressure around the NZD gathered steam in Asia after weak China Caixin PMI data.
- China's Nov Caixin manufacturing PMI came in at 50.8 in November vs. 50.9 expected and 51.00 last.
- The pair is trading with a bearish bias, fails to hold gains above 20-DMA.
- Downside is now holding support at 0.6818 'Double Bottom', break below will see further weakness.
- Scope then for test 0.6780 (Nov 17 lows) and then 0.6750 (trendline support).
Support levels - 0.6818 (double bottom), 0.6809 (61.8% Fib retrace of 0.6347 to 0.7558 rally), 0.6780 (Nov 17 low), 0.6750 (trendline)
Resistance levels - 0.6870 (5-DMA), 0.6881 (20-DMA), 0.6952 (50% Fib), 0.6980 (Nov 9 high)
Recommendation: Good to go short on decisive break below 0.6818, SL: 0.6850, TP: 0.68/ 0.6780/ 0.6750.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -120.618 (Bearish), while Hourly USD Spot Index was at -16.391 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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