- NZD/USD rejected at 20-DMA in last week's trade, currently slips below 5-DMA.
- Kiwi falls in early hours of Asia despite upbeat PPI data, bias lower.
- New Zealand’s Q4 producer price input index came in at +1.0 pct (poll 0.9 pct), while output index was +1.5 pct (poll 0.6 pct).
- Technical studies are biased lower, RSI has slipped below 50 and points south. Stochs are biased lower and MACD supports trend lower.
- Downside bias in the pair likely to see test of 100-DMA at 0.7131. Violation there could see drag upto 0.7058 (61.8% Fib retrace of 0.6862 to 0.7375 rise).
Support levels - 0.7146 (Feb 15 low), 0.7131 (100-DMA), 0.7114 (50-DMA), 0.7058 (61.8% Fib)
Resistance levels - 0.7192 (5-DMA), 0.72, 0.7246 (20-DMA), 0.7254 (23.6% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Bearish Neutral
1W Neutral Neutral
Recommendation: Good to short on rallies around 0.7175/80, SL: 0.7250, TP: 0.7130/ 0.71/ 0.7060
