NZD/USD fails to hold above 5-dma, good to go short on break below 0.6818
- NZD/USD recovery lacks traction, pair fails to hold gains above 5-DMA.
- We see strong support at 0.6818 (May 11 lows), break below will see further downside.
- Technical studies are bearish, momentum with the bears, MACD supports downtrend.
- We notice -ve DMI dominance and ADX is above 25 levels and biased higher.
- Technical studies on weekly charts are also heavily bearish, which suggests continuation of downside.
Support levels – 0.6818 (May 11 lows), 0.68, 0.6716 (61.8% Fib retrace of 0.61968 to 0.7558 rally), 0.67
Resistance levels – 0.6870 (5-DMA), 0.69, 0.7038 (38.2% Fib), 0.7042 (20-DMA)
Our chart for the call
Recommendation: Watch out for break below 0.6818 to go short, target 0.68/ 0.6750/ 0.6720/ 0.67