FxWirePro: NZD/USD consolidates break below 0.70 handle, bias lower, good to short rallies

• NZD/USD pauses downside, edges higher from fresh 5-month lows at 0.6931.
   
• The pair is up 0.19% on the day, trading at 0.6969 at the time of writing.
   
• Technical studies have turned bearish, momentum with the bears, MACD supports downtrend.
   
• We notice -ve DMI dominance and ADX is above 25 levels and biased higher.
   
• The pair has breached major supports at 0.7057 (trendline), 0.7040 (trendline) and 0.6976 (78.6% Fib).
   
• Scope now for test of 0.69 levels ahead of 0.6817 (May 2017 low). We see bearish invalidation only above 200-DMA at 0.7160

Recommendation: Good to go short on rallies around 0.6975/0.6985, SL: 0.7055, TP: 0.69/ 0.6850/ 0.6820

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -95.5249 (Bearish), while Hourly USD Spot Index was at 51.3478 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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