NZD/USD extends grind lower, stay short
NZD/USD extends grind lower along major trendline resistance, bias lower, scope for test of 0.69 ( trendline support).
The pair is struggling to close below 20-DMA support currently at 0.6993, weakness to extend on close below.
On the flipside, break above trendline resistance at 0.7020 to see upside till upper Bollinger Band at 0.7093.
No major NZ event risk during the week ahead, focus remains on GDT dairy auction on Tue.
Futures pricing currently indicating a nil change (probably reflecting little change to auction volume).
In the latest Monthly Economic Indicators March 2017 (MEI) published earlier on the day, NZ Treasury expects GDP growth to recover over 2017 after slowed in Q4 2016.
Support levels - 0.6993 (20-DMA), 0.6972 (78.6% Fib retrace of 0.68621 to 0.73756 rally), 0.6920 (88.6% Fib), 0.6890 (Mar 9 low)
Resistance levels - 0.7008 (5-DMA), 0.7020 (trendline), 0.7058 (61.8% Fib), 0.7089 (100-DMA)
Bias lower, we recommend staying short for 0.69. Bearish invalidation above 0.7020.
The pair is struggling to close below 20-DMA support currently at 0.6993, weakness to extend on close below.
On the flipside, break above trendline resistance at 0.7020 to see upside till upper Bollinger Band at 0.7093.
No major NZ event risk during the week ahead, focus remains on GDT dairy auction on Tue.
Futures pricing currently indicating a nil change (probably reflecting little change to auction volume).
In the latest Monthly Economic Indicators March 2017 (MEI) published earlier on the day, NZ Treasury expects GDP growth to recover over 2017 after slowed in Q4 2016.
Support levels - 0.6993 (20-DMA), 0.6972 (78.6% Fib retrace of 0.68621 to 0.73756 rally), 0.6920 (88.6% Fib), 0.6890 (Mar 9 low)
Resistance levels - 0.7008 (5-DMA), 0.7020 (trendline), 0.7058 (61.8% Fib), 0.7089 (100-DMA)
Bias lower, we recommend staying short for 0.69. Bearish invalidation above 0.7020.
Break below required for further downside.