- 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
The material has been provided by InstaForex Company – www.instaforex.com