NZD/USD chart on Trading View used for analysis
- NZD/USD extends range trade as poor risk appetite keeps antipodeans subdued.
- Concerns about global economic slowdown, partial US shutdown, US-China trade war fears and the slump in global equities keep traders sidelined.
- Further, China's poor manufacturing PMI data for December which showed contraction for the first time since early 2017 weighs.
- NZD/USD trades 0.18% lower at 0.6708 at the time of writing, bias lower.
- Price action contained within daily cloud and breach below cloud base support to see further weakness.
- Scope for test of 61.8% Fib at 0.6632 ahead of 0.6544 (Aug 15 low). Decisive breakout above 200-DMA to negate bearish bias.
- Focus will be on the results from the Global Dairy Trade auction due sometime later today.
Support levels - 0.6654 (cloud base), 0.6632 (61.8% Fib), 0.6544 (Aug 15 low)
Resistance levels - 0.6747 (cloud top), 0.6761 (38.2% Fib), 0.6811 (200-DMA)
Recommendation: Watch out for break below cloud to go short.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
