NZD/USD chart - Trading View
- NZD/USD is trading in a narrow range, hit session highs at 0.6738 and lows at 0.6713.
- The pair was rejected at daily cloud and has slipped below 200-DMA.
- The pair weakened overnight after upbeat U.S. PPI and jobs data buoyed USD across the board.
- Price action hovers around channel base support at 0.6715. Break below will see extension of downside.
- Technical studies support bearish bias. Break below channel base will likely see test of 61.8% Fib at 0.6632.
- Focus now on China Trade Balance data for further impetus. Bearish invalidation above daily cloud.
Support levels - 0.6715 (channel base), 0.6696 (50% Fib), 0.6632 (61.8% Fib)
Resistance levels - 0.6733 (200-DMA), 0.6741 (5-DMA), 0.6763 (nearly converged cloud base and 38.2% Fib)
Recommendation: Watch out for breach of channel support to go short.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
