FxWirePro: NZD/USD struggles to extend downside amid oversold pressures, scope for minor pullback above 5-DMA

NZD/USD chart - Trading View 

• NZD/USD is extending range trade, marginally down 0.07% at 0.6673 at 0430 GMT.
   
• Technical indicators support weakness, RSI and Stochs are sharply lower, MACD and DMI support downside.
   
• However, oversold pressure in Oscillators is hampering downside. Volatility is shrinking.
   
• Trend is strongly bearish. The pair has broken below 200-DMA and channel base support. Price action below cloud and major moving averages.
   
• GMMA indicator has indicated a shift in near-term trend. Scope for weakness till 61.8% Fib at 0.6632 and then 0.6585 (Dec 31st low).
   
• Oversold conditions could see minor pullbacks which could offer fresh entry levels. 
   
• Immediate resistance is seen at 5-DMA at 0.6690. Retrace above could see upside till 0.6730 (200-DMA).
   
• Break below 0.6665 opens up downside. We see little support till 0.6632 (61.8% Fib). 

Support levels - 0.6632 (61.8% Fib), 0.66, 0.6585 (Dec 31st low)

Resistance levels - 0.6696 (50% Fib), 0.6730 (200-DMA), 0.6745 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-holds-support-at-channel-base-good-to-go-short-on-break-below-1526960) has hit TP1. 

Recommendation: Trail SL to 0.67. Hold for further downside.
 
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.