FxWirePro: Cloud caps downside in NZD/USD, break below to see test of 0.7240

• Kiwi fades upbeat NZ PPI data led gains, NZD/USD retraces brief break above 50-DMA at 0.7323 on Thursday.
   
• The pair slipped lower from session highs at 0.7335 to close below the 0.73 handle.
   
• China new home prices which came in at slowest since August 2016, failed to impress markets.
   
• NZD/USD is trading a narrow range on the day. Finds support at daily cloud and 38.2% Fib retrace of 0.6817 to 0.7558 rally at 0.7275.
   
• Break below daily cloud finds next major resistance at 0.7240 (rising trendline). Break below will see drag upto 0.71 levels.
   
• US prelim UMich consumer sentiment data and FOMC member Kaplan’s speech due later in the NA session in focus for further direction.

Support levels - 0.7275 (38.2% Fib retrace of 0.6817 to 0.7558 rally), 0.7167 (weekly 20-SMA), 0.7150 (50-DMA)

Resistance levels - 0.73, 0.7325 (50-DMA), 0.7383 (converged 20-DMA and 23.6% Fib)

Recommendation: Wait for clear directional bias. 

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -28.6144 (Neutral), while Hourly USD Spot Index was at 2.34023 (Neutral) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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