- NZD/USD rejected at 20-DMA on Monday's trade, trades subdued after big miss on trade data poor business confidence.
- New Zealand ANZ Business Confidence down to 16.6 in February from previous 21.7.
- The kiwi printing fresh lows after New Zealand Trade Balance (MoM) declined to $-285M in January from previous $-41M.
- Technical studies also support downside. The pair has shown bearish divergence on RSI.
- Price action has slipped below 5-DMA and 20-DMA has curved lower. We see scope for test of 100-DMA at 0.7131.
Support levels - 0.7141 (200-DMA), 0.7131 (100-DMA), 0.7119 (50% Fib retrace of 0.6862 to 0.7375 rally)
Resistance levels - 0.7196 (5-DMA), 0.7222 (20-DMA), 0.7254 (23.6% Fib retrace of 0.6862 to 0.7375 rally)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good go short on rallies around 0.7185/90, SL: 0.7225, TP: 0.7140/ 0.7120/ 0.71
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -84.6108 (Bearish), while Hourly USD Spot Index was at 50.0199 (Slightly bullish) at 0320 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
