NZD/USD hit three-week low of 0.7237

A weaker-than-expected NZ credit card spending figures released earlier today continue to weigh over the Kiwi. The bird hit a three-week low of 0.7237 and was last seen trading around 0.7242 levels. 

Golden cross - a lagging indicator

Once again, the golden cross - bullish crossover between 50-DMA and 200-DMA - has proved to be a lagging indicator/contrarian indicator. The golden cross was confirmed on July 6 and in the following days the bulls ran out of steam. 

The offered tone gathered pace earlier today after the official data showed electronic card retail sales were flat in June as opposed to the consensus estimate of a 0.8% rise. 

NZD/USD Technical Levels

The daily MACD shows the bearish move is gathering pace. A break below support at 0.7221 (23.6% Fib R of 0.6818-0.7346) would open doors for 0.72 (zero figure) and 0.7171 (June 12 low). On the higher side, breach of resistance at 0.7250 (1-hour resistance) could yield a move higher to 0.7272 (1-hour 50-MA) and 0.7289 (1-hour 200-MA).