Fxwirepro: Huge Gap down Open in Nzd/usd, Downside Vulnerable

  • NZD/USD saw a huge bearish gap down open (almost 40-pips) in Asian trade today, sharp decline in the Chinese stocks weighed on the sentiment.
  • The pair faded minor-recovery attempts, currently trading in the red with a Doji formation, day’s range 0.66/0.6565.
  • Data released aerly today showed NZ confidence and building consents deteriorated significantly bolstering the case for more RBNZ easing in the upcoming month.
  • Downside in the pair looks vulnerable, tests of 0.65 levels likely, shorting rallies will be recommended.
  • Immediate resistance on the upside is seen at 0.66 (Session high ), and then at 0.6638 (10-DMA). Bearish invalidation only on breaks above 200-DMA at 0.6648.
  • On the downside 0.6565 is strong support (session lows and Feb 19th lows), and then 0.6553 (Feb 17th lows).

Recommendation: Good to  sell rallies around 0.660, SL: 0.6650, TP: 0.6550/0.65

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