Divergence in NZD/USD price action seen, target 0.66 levels
Technicals indicated downside for the pair:
- We see divergence between price action and momentum indicators - (Stochastics and RSI making lower lows)
- Stochs have rolled over from overbought levels with a bearish crossover
- RSI is biased lower
Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session.
Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessions of gains.
Chinese CPI figures and the RBNZ policy decision due later this week will have a major impact on the pair.
Supports on the downside are aligned at 0.6713 (Mar 4th lows), 0.6700, 0.6630 (rising trendline).
On the upside resistances are seen at 0.6750 (session highs), 0.6756 (Mar 3rd high), 0.6775 (Feb 26th high).
Good to sell rallies around 0.6730/40, SL: 0.6820, TP: 0.67/0.6655/0.66
- We see divergence between price action and momentum indicators - (Stochastics and RSI making lower lows)
- Stochs have rolled over from overbought levels with a bearish crossover
- RSI is biased lower
Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session.
Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessions of gains.
Chinese CPI figures and the RBNZ policy decision due later this week will have a major impact on the pair.
Supports on the downside are aligned at 0.6713 (Mar 4th lows), 0.6700, 0.6630 (rising trendline).
On the upside resistances are seen at 0.6750 (session highs), 0.6756 (Mar 3rd high), 0.6775 (Feb 26th high).
Good to sell rallies around 0.6730/40, SL: 0.6820, TP: 0.67/0.6655/0.66
Trade active:
Unexpected RBNZ rate cut weighed heavily on the Kiwi, sell-off pushed NZD/USD to fresh one week lows at 0.6619.
We see no respite from bears for now, downside likely to extend.
We see no respite from bears for now, downside likely to extend.