- NZD/USD has failed to break below 200-DMA support at 0.7175, we see further weakness only on break below.
- The pair has edged higher on broad-based USD weakness. Price has broken above 5-DMA at 0.7252.
- Bias still bearish. Technical indicators still support downside in the pair.
- We see bearish divergence from price action on RSI and Stochs which keeps scope for downside.
- That said, break below 200-DMA required for further weakness. Scope then for test of 0.7030 (61.8% Fib).
- On the upside, the pair finds strong resistance at 20-DMA at 0.7297, break above could see further upside.
Support levels - 0.7251 (5-DMA) 0.7176 (200-DMA), 0.7091 (100-DMA), 0.7030 (61.8% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally), 0.7297 (20-DMA), 0.73
Recommendation: Watch out for break above 20-DMA to go long.
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