FxWirePro: NZD/USD takes 50-DMA support at 0.7308, break below will see further weakness

• NZD/USD slips lower for 4 successive session, prints fresh 3-week lows just ahead of 0.73 handle.
   
• Mixed Chinese macro news continued to undermine the sentiment around New Zealand dollar.
   
• Rising risk-off moods amid fresh geopolitical tensions between the US and North Korea keep higher-yielding currencies like NZD under pressure.
   
• Technical studies also support downside. We note bearish RSI divergence, rollover of Stochs and RSI from overbought levels and bearish MACD crossover.
   
• The pair has taken 50-DMA support at 0.7308. Violation at 50-DMA could see drag upto cloud top at 0.7235.
   
• Bearish invalidation only above 20-DMA at 0.7409.

Support levels - 0.7308 (50-DMA), 0.7275 (38.2% Fib retrace of 0.68176 to 0.75580 rally), 0.7235 (cloud base)

Resistance levels - 0.7371 (5-DMA), 0.7383 (23.6% Fib), 0.7409 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Kiwi-dented-by-poor-China-trade-data-NZD-USD-breaks-below-20-DMA-stay-short-841457) has hit all targets.

Recommendation: Good to go short on break below 50-DMA, SL: 0.7375, TP: 0.7275/ 0.7235/ 0.72

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -133.242 (Bearish), while Hourly USD Spot Index was at 35.4497 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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