FxWirePro: NZD/USD finds stiff resistance at 0.7297, good to go long on break above

• NZD/USD has failed to break below 200-DMA support at 0.7175, we see further weakness only on break below.
   
• The pair has edged higher on broad-based USD weakness. Price has broken above 5-DMA at 0.7252.
   
• Bias still bearish. Technical indicators still support downside in the pair.
   
• We see bearish divergence from price action on RSI and Stochs which keeps scope for downside.
   
• That said, break below 200-DMA required for further weakness. Scope then for test of 0.7030 (61.8% Fib).
   
• On the upside, the pair finds strong resistance at 20-DMA at 0.7297, break above could see further upside.

Support levels - 0.7251 (5-DMA) 0.7176 (200-DMA), 0.7091 (100-DMA), 0.7030 (61.8% Fib retrace of 0.6780 to 0.7435 rally)

Resistance levels - 0.7281 (23.6% Fib retrace of 0.6780 to 0.7435 rally), 0.7297 (20-DMA), 0.73

Recommendation: Watch out for break above 20-DMA to go long.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest