FxWirePro: NZD/USD edges lower from 3-month highs at 0.7205, kiwi dented after weak dairy auction results

• NZD/USD is edging lower from 3-month highs at 0.7205, the pair has slipped below 0.72 handle to currently trade at 0.7181 levels.
   
• Minor-correction seen in the pair amid broad base strength in US dollar and higher treasury yields.
   
• The kiwi dented after as the latest dairy auction results from Fonterra, showed a drop in the milk prices to +0.6% from +3.2% seen previously.
   
• Technical studies are still biased higher, we do not see any major signs of reversal.
   
• We see weakness on close below 5-DMA support at 0.7142, test of 200-DMA at 0.71 then likely.
   
• Major reversal seen only on break below 100-DMA at 0.7058.

Support levels - 0.7151 (50% Fibo 0.74854 to 0.68176 fall), 0.7142 (5-DMA), 0.7072 (38.2% Fib of 0.74854 to 0.68176 fall), 0.7016 (20-DMA)

Resistance levels - 0.7186 (Oct 26 high), 0.72, 0.7230 (61.8% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-rejected-at-highs-break-below-200-DMA-at-07104-could-see-weakness-741384) has hit TP1/2/3.

Recommendation: Book partial profits at highs, raise trailing stop to 0.7150, stay long.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 152.334 (Bullish), while Hourly USD Spot Index was at -130.668 (Bearish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.