FxWirePro: NZD/USD dips into daily cloud, on track to test 61.8% Fib at 0.6632, stay short

NZD/USD chart on Trading View used for analysis

• NZD/USD has broken below cloud top support, bias is bearish.
   
• Intraday bias for the pair remains bearish. Break below cloud raises scope for further downside.
   
• The major has broken channel base support and upside remains capped at 5-DMA which is sharply lower.
   
• Looming U.S. government shutdown when the new Congress convenes and Democrats take over the House of Representatives is souring risk sentiment, keeping the antipodeans under pressure.
   
• Momentum with the bears. Breach at cloud support will see weakness till 61.8% Fib at 0.6632.
   
• On the flipside, retrace into channel and break above 200-DMA could see upside.

Support levels - 0.6697 (50% Fib), 0.6654 (cloud base), 0.6632 (61.8% Fib)

Resistance levels - 0.6727 (5-DMA), 0.68, 0.6825 (200-DMA) 

Recommendation: Stay short on rallies, SL: 0.6765, TP: 0.6655/ 0.6635

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.