FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (AUDUSD and USDCAD) for the day)
FxWirePro:GBP/NZD attracts selling interest, could be on verge of a bigger drop
• GBP/NZD declined on Monday as improving risk appetite and higher commodity prices boosted Kiwi dollar.
• Investors are waiting for New Zealand inflation data on Wednesday , which are expected to show Consumer inflation slowed slightly to 7.1% from 7.2% last quarter.
•The pair is approaching 38.2% fib support, a daily close below will accelerate down side towards 1.8900 level.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 46.
• Immediate resistance is located at 1.9133 (9 DMA), any close above will push the pair towards 1.9246 ( 50 % fib).
• Immediate support is seen at 1.9006(38.2% fib ) and break below could take the pair towards 1.8904 (Lower BB).
Recommendation: Good to sell around 1.9070, with stop loss of 1.9150 and target price of 1.8960.