FxWirePro: NZD/USD Holds Minor Support at 0.6835, Good to Short Breaks Below

FxWirePro: NZD/USD Holds Minor Support at 0.6835, Good to Short Breaks Below

• NZD/USD has broken strong trendline support at 0.6835 on Friday's trade and is currently trading at 0.6858. 
• The pair is extending declines after upside was capped by channel top at 0.7045, has slipped below 5&10 day moving averages. 
• Downside finds minor support at 0.6835 levels, breaks below will see test of 0.6780 levels. 
• On the upside 0.69 is immediate resistance ahead of 0.6918 (5-DMA) and the 0.6926 (10-DMA). 
• Technicals are biased lower. Markets wary ahead of major central bank decisions due in the week. 
• NZ economic data that has been better than expected in both the housing market and CPI that had been weakening the case for an April OCR cut. 
• This week's US FOMC meeting could set the tone for USD/Asia. No change is expected, but if the Fed continues to signal a dovish stance, then Asian asset markets can rally.
  

Recommendation: Short NZD/USD on breaks below 0.6835, SL: 0.6870, TP: 0.6780 

The material has been provided by InstaForex Company - www.instaforex.com