- NZD/USD has edged higher from fresh 4-week lows at 0.6920, bias lower.
- Better risk environment amid higher Asian equities and oil prices is seeing some upside in the pair.
- Bearish bias intact as long as the pair holds below major trendline resistance currently at 0.6975 levels.
- US dollar remains in demand across the board, CFTC positioning data for the week ending 4th April 2017 also showed surge in USD net longs.
- Kiwi is likely to track weakness in the Aussie, after worse-than-expected Australia housing finance data and weaker copper prices.
- We see bearish invalidation only on break above 0.6975 (falling trendline resistance).
Support levels - 0.69 (trendline), 0.6890 (Mar 9th lows), 0.6862 (Dec 23 low)
Resistance levels - 0.6957 (5-DMA), 0.6975 (trendline), 0.70 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-capped-below-major-trendline-resistance-good-to-go-short-on-rallies-617244) has hit TP1,2&3.
Recommendation: Book partial profits at lows. Lower trailing stop to 0.6975, hold for 0.69
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 32.8148(Neutral), while Hourly USD Spot Index was at 59.0533 (Neutral) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
