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

25 April 2016, 07:11
Roberto Jacobs
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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



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