- Buying interest in the Greenback remains high, after recent market tension over the Middle East has temporarily eased.
- The US officially announced on Tuesday that it was pulling out of the Iran deal and likely to re-impose sanctions on Iran.
- A bout of short-covering cannot be ruled out heading into the RBNZ interest rates decision due out early Thursday.
- Technical studies are biased lower. RSI below 30 and MACD well below zero levels.
- The major has broken strong support at 0.6972 (trendline), decisive and is extending weakness below 38.2% Fib.
- We see scope for test of major trendline support at 0.69 levels. Violation there will see further weakness.
- 5-DMA is immediate resistance at 0.70 levels. Close above to see minor upside.
Support levels - 0.6972 (trendline), 0.6925 (78.6% Fib), 0.69
Resistance levels - 0.70, 0.7033 (61.8% Fib), 0.71, 0.7118 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-finds-strong-support-at-06972-stay-short-on-decisive-break-below-1297397) is progressing well.
Recommendation: Bias lower, stay short.
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