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