FxWirePro: NZD/USD capped below 200-DMA, further upside only on break above

Technical Analysis: 

• NZD/USD capped below 200-DMA at 0.7082.
• Intraday bias is neutral. 
• Break above 200-DMA could see further upside.
• On the flip side break below 20-DMA could see drag till 0.6862.

Fundamentals Factors:

• The dollar which has been on the back-foot, collapsed overnight on the back of Trump's lack of conviction during the news conference.
• Markets which were looking for something concrete in respect to Trump's policies, were left largely disappointed.
• Weak data weighed over NZD. ANZ commodity prices in December rose 0.7% m/m, significantly lower than the prior 2.7%. 
• However, the details revealed the dairy prices rose for the seventh time in a row, up 3.9% m/m, which capped downside.

Support levels - 0.7014 (5-DMA), 0.70(23.6% Fib of 0.74854 to 0.68621 fall), 0.6948 (20-DMA)

Resistance levels - 0.7082 (200-DMA), 0.71, 0.7116 (trendline)

Recommendation: We prefer to wait for confirmation on Technicals to initiate trade.