- NZD/USD attempted, but failed, to hold break above the 0.69 handle.
- Price action has slipped below hourly 200-SMA at 0.6914 and is currently hovering around 0.69 handle after hitting session lows at 0.6897.
- The pair has slipped below 5-DMA and now finds strong support at 0.6895 (trendline). Break below will see further weakness.
- Focus now on RBNZ, we expect the central bank to still be somewhat cautious.
- This could perhaps disappoint a market that is arguably looking for a slightly more hawkish tone.
- Technical studies on hourly charts are bearish, break below 0.6895 could see test of 0.6818 (double bottom).
Support levels -0.6895 (trendline), 0.6818 (double bottom), 0.68
Resistance levels - 0.6914 (1H 200-SMA), 0.6968 (May 3rd high), 0.6970 (20-DMA), 0.7038 (38.2% Fib of 0.61968 to 0.7558 rally)
Recommendation: Good to go short on break below 0.6895, SL: 0.6920, TP: 0.6820/ 0.68
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -173.096 (Bearish), while Hourly USD Spot Index was at 0.111333 (Neutral) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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