• USD extends gains after the latest FOMC minutes revealed that the US interest rate hike is back on the cards this June.
     
  • The Chinese equities appear to outperform their Asian counterparts, despite weaker China’s business sentiment data and lower oil prices, keep US dollar supported.
     
  • NZD/USD breaks major trendline support at 0.6740 and is on track to test 0.6675 levels.
     
  • The pair is trading around 0.6740 levels after being rejected at session highs by 0.6765.
     
  • Immediate support is seen by cloud base at 0.6714, while resistance is located at 0.6768 (5-DMA).
     
  • We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-Kiwi-on-the-back-foot-NZD-USD-slips-below-078-handle-good-to-sell-rallies-209544), which is progressing.

Recommendation: Hold for targets. Break below 0.67 will see test of 0.6675. Bearish invalidation only above 0.6815.
 

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