Short NZD/USD on breakout below 0.7075, target 0.6970
Kiwi extends weakness on a broad based US dollar strength and decline in the GDT price index.
NZD/USD slips below 0.71 handle, but holds above strong support at 0.7075.
The pair prints new 1-week lows of 0.7081, slipping from highs of 0.7240 hit on Monday.
Data released early today showed international dairy prices edged down at the latest auction. The GDT price index fell by 0.4 percent since the previous sale last month.
On the Technical side, price action in the pair has slipped below 20-DMA, intraday bias is lower. Stochastics and RSI point south.
Break below 0.7075 (trendline support) could see test of 0.6970 levels.
On the upside resistance aligns at 0.71 (20-DMA), 0.7127 (10-DMA) and then 0.7156 (session highs).
Bearish invalidation on reversal above 0.7127, upside could then gain traction. Test of 0.7235 levels likely.
Good to go short on break below 0.7075, SL: 0.7130, TP: 0.7050/ 0.70/ 0.6970
NZD/USD slips below 0.71 handle, but holds above strong support at 0.7075.
The pair prints new 1-week lows of 0.7081, slipping from highs of 0.7240 hit on Monday.
Data released early today showed international dairy prices edged down at the latest auction. The GDT price index fell by 0.4 percent since the previous sale last month.
On the Technical side, price action in the pair has slipped below 20-DMA, intraday bias is lower. Stochastics and RSI point south.
Break below 0.7075 (trendline support) could see test of 0.6970 levels.
On the upside resistance aligns at 0.71 (20-DMA), 0.7127 (10-DMA) and then 0.7156 (session highs).
Bearish invalidation on reversal above 0.7127, upside could then gain traction. Test of 0.7235 levels likely.
Good to go short on break below 0.7075, SL: 0.7130, TP: 0.7050/ 0.70/ 0.6970