FxWirePro: NZD/USD extends weakness below 200-DMA, good to stay short on upticks

NZD/USD chart on Trading View used for analysis

• NZD/USD extends weakness below 200-DMA, intraday bias bearish.
   
• The pair remains offered for the fifth straight session, narrowing NZ-US yield spreads weigh.
   
• Focus now on RBNZ policy meeting (Wednesday) for further impetus. 
   
• The central bank is widely expected to keep interest rates unchanged and adopt a dovish tone. 
   
• Technical indicators support weakness in the pair. Scope for test of next major support at 0.6660 (major trendline). 
   
• Violation there could see test of 61.8% Fib at 0.6632 and then 0.6585 (Jan 3 low).
   
• We see stiff resistance at 200-DMA at 0.6756. Retrace above could see upside resumption.

Support levels - 0.6696 (50% Fib), 0.6660 (trendline), 0.6632 (61.8% Fib)

Resistance levels - 0.6746 (5-DMA), 0.6756 (200-DMA), 0.6778 (55-EMA)

Recommendation: Good to go short on upticks, SL: 0.6780, TP: 0.6660/ 0.6635

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