NZD/USD on track to test 20-DMA at 0.7323
NZD/USD extending downside for 3rd consecutive session after rejection at major trendline resistance.
The pair has broken below 5-DMA at 0.7378 and is currently hovering around 0.7355 levels.
The pair has formed a spinning top formation at highs which raises scope for further downside.
Bears eye 20-DMA at 0.7323. Violation at 20-DMA could see further weakness.
On the flipside, 5-DMA at 0.7378 is immediate resistance. Retrace and close above could see retest of trendline at 0.7435.
Support levels - 0.7324 (20-DMA), 0.73, 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.7378 (5-DMA), 0.74, 0.7435 (trendline)
Good to go short on rallies around 0.7360/70, SL: 0.74, TP: 0.7325/ 0.73/ 0.7280
The pair has broken below 5-DMA at 0.7378 and is currently hovering around 0.7355 levels.
The pair has formed a spinning top formation at highs which raises scope for further downside.
Bears eye 20-DMA at 0.7323. Violation at 20-DMA could see further weakness.
On the flipside, 5-DMA at 0.7378 is immediate resistance. Retrace and close above could see retest of trendline at 0.7435.
Support levels - 0.7324 (20-DMA), 0.73, 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.7378 (5-DMA), 0.74, 0.7435 (trendline)
Good to go short on rallies around 0.7360/70, SL: 0.74, TP: 0.7325/ 0.73/ 0.7280
Comment:
Edges higher from session lows at 0.7288.
Bias lower.
Bias lower.
Focus on NZ Retail Sales figures (Thursday), US Markit PMI Composite (today 14:45 GMT, followed by the FOMC Minutes