FxWirePro: NZD/USD Breaks Major Trendline Support at 0.6740, Targets 0.6675

FxWirePro: NZD/USD Breaks Major Trendline Support at 0.6740, Targets 0.6675

19 May 2016, 06:54
Roberto Jacobs
0
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FxWirePro: NZD/USD Breaks Major Trendline Support at 0.6740, Targets 0.6675

  • USD extends gains after the latest FOMC minutes revealed that the US interest rate hike is back on the cards this June. 
  • The Chinese equities appear to outperform their Asian counterparts, despite weaker China’s business sentiment data and lower oil prices, keep US dollar supported. 
  • NZD/USD breaks major trendline support at 0.6740 and is on track to test 0.6675 levels. 
  • The pair is trading around 0.6740 levels after being rejected at session highs by 0.6765. 
  • Immediate support is seen by cloud base at 0.6714, while resistance is located at 0.6768 (5-DMA). 
  • We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-Kiwi-on-the-back-foot-NZD-USD-slips-below-078-handle-good-to-sell-rallies-209544), which is progressing.

Recommendation: Hold for targets. Break below 0.67 will see test of 0.6675. Bearish invalidation only above 0.6815. 

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