NZD/USD Technical Analysis: Kiwi drops to 200-HMA on dismal NZ business confidence reading

• The ANZ business confidence reading dipped to -50.3 in August from the previous month's print of -44.9. The NZD is being offered across the board in response to the dismal data.
• The NZD/USD pair has dropped to the 200-hour moving average (HMA) 0.6677 and could suffer deeper losses if the support at 0.6668 (rising trendline on 1H chart) is breached. Moreover, it would mean the corrective rally from the Aug. 15 low of 0.6544 has ended.
• On the higher side, a move above 0.6717 would validate the ascending (bullish) 5-day and 10-day MAs and open the doors to a sustained rally above the 50-day MA of 0.6742.

Hourly chart

Spot Rate: 0.6682

Daily High: 0.6717

Daily Low: 0.6677

Trend: Bearish below rising trendline

Resistance

R1: 0.6685 (resistance on the hourly chart)

R2: 0.6717 (session high)

R3: 0.6742 (50-day MA)

Support

S1: 0.6678 (10-day MA)

S2: 0.6668 (rising trendline support)

S3: 0.6620 (Aug. 24 low)