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FxWirePro: NZD/USD holds channel base support, break below required for further weakness

NZD/USD chart - Trading View 

  • NZD/USD trades 0.13% lower at 0.65 at 0355 GMT, bias lower.
     
  • Antipodeans depressed on dismal China data dump and continuing Sino-US trade dispute.
     
  • China consumer spending, as represented by retail sales, rose 7.2% in April, missing the expected rise of 8.6%.
     
  • Meanwhile, industrial production rose 5.4% in April, having registered 8.5% growth in March, missing expectations for a print of 6.5%. 
     
  • Upside in the pair capped at 5-DMA and a possible 'Death Cross' (bearish 50-DMA crossover on 200-DMA) keeps downside pressure.
     
  • The pair is currently holding support at channel base at 0.6865, break below will accentuate weakness.
     
  • Major trend in the pair is bearish. Next major bear target lies at 0.6541 (nearly converged Lower BB and 78.6% Fib).
     
  • On the flipside, break above 5-DMA could see test of 21-EMA at 0.6631. Break above 21-EMA targets 200-DMA at 0.6716.

Support levels - 0.6541 (nearly converged Lower BB and 78.6% Fib), 0.65, 0.6486 (88.6% Fib)

Resistance levels - 0.6579 (5-DMA), 0.6632 (61.8% Fib and 21-EMA), 0.6716 (200-DMA)

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

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