NZD/USD is extending downside on the day after the RBNZ said that an increase in bank capital requirement could lead to an interest rate cut.
The pair now eyes 200-DMA at 0.6751, break below 200-DMA will accentuate weakness.
Upside is capped at 21-EMA. RSI is below 50, bias lower. Stochastics oscillator is biased lower.
Weekly close below 20-W SMA at 0.6750 will confirm near-term downtrend.
Next major support lies at 0.6685 (Triangle base). Breach there will see test of 61.8% Fib at 0.6632.
Support levels - 0.6750 (nearly converged 200-DMA and 20-W SMA ), 0.6685 (Triangle base), 0.6632 (61.8% Fib)
Resistance levels - 0.6813 (21-EMA), 0.6831 (5-DMA), 0.6840 (23.6% Fib)
Watch out for break below 200-DMA to go short, SL: 0.68, TP: 0.6685/ 0.6635
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