- NZD/USD extending downside for 3rd consecutive session after rejection at major trendline resistance.
- The pair has broken below 5-DMA at 0.7378 and is currently hovering around 0.7355 levels.
- The pair has formed a spinning top formation at highs which raises scope for further downside.
- Bears eye 20-DMA at 0.7323. Violation at 20-DMA could see further weakness.
- On the flipside, 5-DMA at 0.7378 is immediate resistance. Retrace and close above could see retest of trendline at 0.7435.
Support levels - 0.7324 (20-DMA), 0.73, 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.7378 (5-DMA), 0.74, 0.7435 (trendline)
Recommendation: Good to go short on rallies around 0.7360/70, SL: 0.74, TP: 0.7325/ 0.73/ 0.7280.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 62.4376 (Neutral), while Hourly USD Spot Index was at 102.847 (Bullish) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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