- NZD/USD breaks major wedge base support at 0.6720 and closes lower in Tuesday’s trade at 0.6703.
- The pair is down on the day at fresh five-week lows, currently trading at 0.6654 in the Asian session, battered for a third day today.
- The bearish pressure on the Kiwi mounting as weak Chinese data and drop in the dairy prices continue to dampen the sentiment.
- Technicals point south: 5&10-DMAs show bearish crossover, break and close below strong support at 0.6720, MACD line crosses below signal line, RSI is at 43 and points south, Stochs sharply lower.
- Also, on the weekly charts, Stochs have rolled-over from overbought zone with a bearish crossover and RSI has dipped below 50 levels after brief spike above and points south.
Recommendation: Good to sell rallies around 0.6660, SL: 0.6720, TP: 0.6610/0.66/0.6580Resistance Levels:R1: 0.6708 (Session high Jan 6)R2: 0.6720 (Wedge base)R3: 0.6754 (5-DMA)Support Levels:S1: 0.6632 (session lows Jan 6)S2: 0.6611 (Dec 7 lows)S3: 0.6682 (cloud top)
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