FxWirePro: NZD/USD breaks 20-DMA support at 0.7249, bias lower,stay short

• NZD/USD extends downside for 2nd consecutive session, breaks 20-DMA support at 0.7249.
   
• Kiwi dented after New Zealand election results provided no clear victory and resulted in a hung parliament.
   
• Downbeat New Zealand trade balance data further weighed on the pair.
   
• Data released earlier today showed New Zealand Trade Balance came in at $-3.2B, below forecasts at $-2.91B in August.
   
• Technical indicators are bearish, RSI below 50 levels and biased lower, Stochs point south.
   
• MACD is on verge of bearish crossover on signal line. Next major support below 20-DMA is seen at 100-DMA at 0.7237.
   
• On the flipside, we see bearish invalidation on breakout above daily cloud.

Support levels - 0.7237 (100-DMA), 0.72 (trendline), 0.7145 (200-DMA)

Resistance levels - 0.7249 (20-DMA), 0.7275 (38.2% Fib retracement of 0.68176 to 0.7558 rally), 0.7301 (5-DMA)

Call update: We had advised a short in our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-holds-20-DMA-support-at-07250-good-to-go-short-on-break-below-915862).

Recommendation: Bias lower, hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -70.0669 (Neutral), while Hourly USD Spot Index was at 7.81479 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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