NZD/USD trades narrow range, break of 0.6730 confirms downside
NZD/USD holds wedge base support at 0.6720 and edges higher in Monday's trade to close at 0.6749, currently trading a tight 0.6740/57 range in the Asian session.
Chinese indices were seen recovering after the huge sell-off seen yesterday after massive liquidity injection by the PBoC to the tune of 130bn Yuan in a bid to stabilize the Chinese stock markets.
The stocks on the Asian bourses reversed early losses and swung back higher, tracking the recovery in the Chinese markets offering some respite to the Asian traders, but NZD largely muted, weighed by lower commodity prices.
Techs indicate weakness. Rising wedge formation seen on dailies, but volumes are declining and momentum studies are neutral.
On the weekly charts, Stochs have rolledover from overbought zone with a bearish crossover and RSI is at 50 levels after brief spike above and points south.
Watchout for 0.6730 levels, pair could see further weakness if it breaks below, tests of 0.6680 and then 0.66 levels likely.
0.6730 is the rising trendline and wedge base support, while immediate resistance is seen at 0.6805 (converged 5&10 DMAs).
Chinese indices were seen recovering after the huge sell-off seen yesterday after massive liquidity injection by the PBoC to the tune of 130bn Yuan in a bid to stabilize the Chinese stock markets.
The stocks on the Asian bourses reversed early losses and swung back higher, tracking the recovery in the Chinese markets offering some respite to the Asian traders, but NZD largely muted, weighed by lower commodity prices.
Techs indicate weakness. Rising wedge formation seen on dailies, but volumes are declining and momentum studies are neutral.
On the weekly charts, Stochs have rolledover from overbought zone with a bearish crossover and RSI is at 50 levels after brief spike above and points south.
Watchout for 0.6730 levels, pair could see further weakness if it breaks below, tests of 0.6680 and then 0.66 levels likely.
0.6730 is the rising trendline and wedge base support, while immediate resistance is seen at 0.6805 (converged 5&10 DMAs).
