- NZD/USD sell-off continues, the pair trades 0.37% lower on the day.
- The major is extending weakness after breach at 'Triangle Base' support.
- Price action has shown a decisive break below 200-DMA which adds to the bearish bias.
- Technical analysis is biased bearish. The pair has broken below daily cloud. RSI below 50, bias lower, Stochs sharply lower.
- Break below 200-DMA raises scope for test of 61.8% Fib at 0.7031. On the other side, break above daily cloud negates bearish bias.
- The major is likely to be influenced by strength in the Greenback. Also focus shall be on New Zealand Trade Balance figures due Thursday for further impetus.
Support levels - 0.7108 (50% Fib), 0.7073 (Jan 3 low), 0.7031 (61.8% Fib)
Resistance levels - 0.7183 (200-DMA), 0.72, 0.7212 (5-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1265617) has hit TP1/2 and is approaching final targets.
Recommendation: Book partial profits at lows. Trail SL to 0.7185. Hold for 0.71/ 0.7075/ 0.7035
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