FxWirePro: NZD/USD upside pauses at 78.6% Fib, bearish divergence keeps scope for downside

• NZD/USD eases from 4-month highs at 0.7343, has slipped below 0.73 handle and is currently trading at 0.7291.
   
• Upside in the pair has paused at 78.6% Fib of 0.74854 to 0.68176 fall, break above to see further upside.
   
• Bearish divergences on RSI and Stochs are keeping scope for downside correction in the major.
   
• That said, technical indicators are still in positive territory, RSI strong at 66 levels and points north.
   
• Close below 5-DMA at 0.7279 likely to see test of 20-DMA at 0.7219. Violation there could see further downside.
   

Support levels - 0.7279 (5-DMA), 0.7219 (20-DMA), 0.72

Resistance levels - 0.7342 (78.6% Fib retrace of 0.74854 to 0.68176 fall), 0.7375 (Feb 7 high), 0.74

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-trendline-resistance-at-07260-bias-higher-stay-long-772054) has hit all targets.

Recommendation: For now we prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -17.3051 (Neutral), while Hourly USD Spot Index was at -101.848 (Bearish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest