- NZD/USD sell-off halts and pair edges higher from fresh mutli-week lows at 0.6982 to retake the 0.70 handle.
- Price action rages below daily cloud and has 200-DMA.
- Technicals studies are heavily bearish, we see scope for test of 0.6930 (trendline support). Violation there could see 0.68 levels.
- The sharp rise in the Fed rate hike bets only amplifies the bearish bias.
- Markets await the GlobalDairyTrade (GDT) price auction, scheduled to be held later today for further direction.
Support levels - 0.6972 (78.6% Fib and Nov 24 low), 0.6930 (trendline), 0.69, 0.6862 (Dec 23, 2016 low)
Resistance levels - 0.7050 (5-DMA), 0.7087 (cloud base), 0.7150 (200-DMA)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bearish Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to sell rallies around 0.7010/20, SL: 0.7090, target 0.6975/ 0.6930/ 0.69
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -104.506(Highly bearish), while Hourly USD Spot Index was at -17.0513 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
