NZD/USD -0.22% extending downside for 3rd consecutive session after rejection at major trendline resistance.
The pair has broken below 5-DMA at 0.7378 and is currently hovering around 0.7355 levels.
The pair has formed a spinning top formation at highs which raises scope for further downside.
Bears eye 20-DMA at 0.7323. Violation at 20-DMA could see further weakness.
On the flipside, 5-DMA at 0.7378 is immediate resistance. Retrace and close above could see retest of trendline at 0.7435.
Support levels - 0.7324 (20-DMA), 0.73, 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally)
Resistance levels - 0.7378 (5-DMA), 0.74, 0.7435 ( trendline )
Good to go short on rallies around 0.7360/70, SL: 0.74, TP: 0.7325/ 0.73/ 0.7280
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