NZDUSD: Short Term Negative Bias

NZDUSD extends its rejection slide from 0.6786 the three month high breaching the 200 day moving average. New Zealand Trade Balance (MoM) came in at $365M topping expectations of $100M in June, the annual figure came in at $-4.94B also beating expectations of $-5.105B in June.  New Zealand Imports came in at $4.65B, missing expectations of $5.2B in June. New Zealand Exports registered at $5.01B, below expectations of $5.29B in June.

Yesterday a report that the RBNZ is starting to explore more unconventional policy pushed the kiwi lower.

On technical side the pair rejected for three consecutive days at three month high around 0.6786. The short term momentum turned bearish yesterday as the pair breached the 50 and 100 hour moving averages and continued breaking also below the 200 hour moving average. Support for the pair stands at 0.6691 area today’s low and then at 0.6672 the 100 day moving average. On the upside immediate resistance stands at 0.6703 the daily high and if the pair manages to close above it might continue with an attempt to 0.6786 and then at 0.6836 the high from April 1st. All in all bullish trend has canceled for now and traders with short positions in NZDUSD targeting down to 0.6672, stop loss orders must be placed at 0.6720.Don’t miss a beat! Follow us on Twitter.