FxWirePro: NZD/JPY Breaks Major Support at 73.80, on Track to Test Channel Base at 72.30
24 May 2016, 08:59
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FxWirePro: NZD/JPY Breaks Major Support at 73.80, on Track to Test Channel Base at 72.30
- Kiwi bears relentless amid risk-off sentiment persisting in the markets, both Asian equities and oil prices trading in the red.
- NZD/JPY extending overnight slump, breaks major support at 73.80, is on track to test channel base support at 72.30.
- Poor Westpac MNI Chinese consumer sentiment data further adds to the downward pressure on the bird.
- Techs also support downside, Stochs have bounced off from near overbought levels, 5-DMA is on the verge of a bearish crossover on 10-DMA. Momentum is bearish, RSI is biased lower.
- US new home sales data due later today, and NZ trade balance data due tomorrow may provide fresh direction on NZD/USD.
- Pair see strong resistance at 74 levels (converged 5&10 DMA and psychological level). Bearish invalidation above 74.
- Supports ahead of 72.30 are located at 73.20, 73 and then 72.88 levels.
Recommendation: Good to sell rallies around 73.50/60, SL: 74, TP: 73/72.90/72.30
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