FXWIREPRO: NZD/USD Edges Lower from Session Highs at 0.6750, Good to Sell Rallies

FXWIREPRO: NZD/USD Edges Lower from Session Highs at 0.6750, Good to Sell Rallies

• Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session.
• Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessions of gains.
• Technicals indicated downside for the pair:- We see divergence between price action and momentum indicators - Stochastics and RSI- Stochs have rolled over from overbought levels with a bearish crossover- RSI is biased lower
• Chinese CPI figures and the RBNZ policy decision due later this week will have a major impact on the pair.
• Higher-yielding currencies like the Kiwi to struggle as sentiment remains weak and oil is seeing renewed downside.
• We see the pair test trendline support at 0.6635 and further weakness could see 0.6565 levels.
• Supports on the downside are aligned at 0.6713 (Mar 4th lows), 0.6700, 0.6630 (rising trendline).
• On the upside resistances are seen at 0.6750 (session highs), 0.6756 (Mar 3rd high), 0.6775 (Feb 26th high).

Recommendation: Sell rallies around 0.6735/40, SL: 0.6820, TP: 0.67/0.6655/0.66


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