- NZD/USD remains capped below 5-DMA from last week, the pair has struggled to hold break above 5-DMA.
- Uptrend in the pair has stalled near 78.6% Fib retrace of 0.7485 to 0.6817 fall at 0.7342.
- Bias on daily charts has turned bearish with turn in 5-DMA and bearish MACD crossover.
- Downside finds strong support at 20-DMA at 0.7268, break below will see further drag.
- Technical indicators are biased lower, Doji formation seen on Friday's candle adds to downside bias.
- Focus this week shall be on US macro data - monthly retail sales and CPI print, along with the Fed Chair Janet Yellen's testimony for cues on further direction.
Support levels - 0.7268 (20-DMA), 0.7230 (61.8% Fib of 0.7485 to 0.6817 fall), 0.7206 (June 21 low)
Resistance levels - 0.7279 (5-DMA), 0.7342 (78.6% Fib), 0.7375 (Feb 7th high)
Recommendation: Good to go short on break below 20-DMA, SL: 0.7310, TP: 0.7230/ 0.72/ 0.7170
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -18.7309 (Neutral), while Hourly USD Spot Index was at 91.3868 (Bullish) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
