- NZD/USD has continued in the downtrend for 7th consecutive session, has hit fresh 2-month lows at 0.6892.
- The ADP report overnight is seen as a positive prelude to this Friday's all-important nonfarm payrolls report.
- Weaker dairy prices and the RBNZ’s reiteration that it is on hold for a long time are additional negative factors.
- The pair has broken below major support at 0.6930, intraday bias lower. We see scope for further downside, test of 0.6814 likely.
Support levels - 0.6862 (Dec 23 low), 0.6810 (trendline), 0.68
Resistance levels - 0.6916 (50% Fib retrace of 0.6347 to 0.7485 rally), 0.6960 (5-DMA), 0.70, 0.7050 (38.2% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bearish Oversold
4H Bearish Oversold
1D Bearish Oversold
1W Bearish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-edges-higher-from-fresh-multi-week-lows-at-06982-bias-lower-short-rallies-575730) has hit all targets.
Recommendation: Book partial profits, lower trailing stop to 0.6960, stay short for 0.6810.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -139.382(Highly Bearish), while Hourly USD Spot Index was at 101.655 (Highly bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
