FxWirePro: NZD/USD finds strong support at 5-DMA at 0.6915, on track to test 20-DMA at 0.6981

• NZD/USD hovers around session lows at 0.6927, caution seen ahead of GDT auction.
   
• The pair retraced dip below 0.69 handle on Monday and closed at 0.6944 levels.
   
• Kiwi boosted by New Zealand Finance Minister Robertson's comments. Robertson announced a 2-phase review of RBNZ mandate and said that there was no desire to have NZD included in the RBNZ review.
   
• New Zealand PM Jacinda Ardern in his latest remarks said that “Not at all" concerned by recent falls in NZD.
   
• Further WTI hits fresh two-year highs at $57.51, also to lend support to the commodity currency.
   
• Technical studies are biased higher, we see rollover of RSI and Stochs from oversold levels and MACD shows bullish crossover on signal line.
   
• We see scope for test of 20-DMA at 0.6981, further upside only on break above.
   
• 5-DMA at 0.6915 is strong support, weakness likely on break below. Scope then for test of trendline at 0.6818.

Support levels - 0.6915 (5-DMA), 0.69, 0.6818 (trendline), 0.68

Resistance levels - 0.6968 (May 3rd high), 0.6981 (20-DMA), 0.7038 (38.2% Fib of 0.61968 to 0.7558 rally)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-extending-gains-for-3rd-successive-session-eyes-20-DMA-at-06995-987890) has almost achieved TP1.

Recommendation: Bias higher as long as 5-DMA support holds.

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