FxWirePro: NZD/USD extends grind lower along major trendline resistance, bias lower, stay short

• NZD/USD trades with a bearish bias, scope for test of 0.69 ( trendline support). 
   
• Price action is below daily cloud and major moving averages, technicals also bearish on intraday charts. 
   
• The pair is struggling to close below 20-DMA support currently at 0.6993, weakness to extend on close below.
   
• On the flipside, break above trendline resistance at 0.7020 to see upside till upper Bollinger Band at 0.7093.
   
• No major NZ event risk during the week ahead, focus remains on GDT dairy auction on Tue.
   
• Futures pricing currently indicating a nil change (probably reflecting little change to auction volume).
   
• In the latest Monthly Economic Indicators March 2017 (MEI) published earlier on the day, NZ Treasury expects GDP growth to recover over 2017 after slowed in Q4 2016.

Support levels - 0.6993 (20-DMA), 0.6972 (78.6% Fib retrace of 0.68621 to 0.73756 rally), 0.6920 (88.6% Fib), 0.6890 (Mar 9 low) 

Resistance levels - 0.7008 (5-DMA), 0.7020 (trendline), 0.7058 (61.8% Fib), 0.7089 (100-DMA) 

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral    

Call update: We had advised a short call (http://www.econotimes.com/FxWirePro-NZD-USD-capped-below-major-trendline-resistance-good-to-go-short-on-rallies-617244). 

Recommendation: Our call is progressing well. We recommend holding for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -77.986(Bearish), while Hourly USD Spot Index was at 52.0137 (Neutral) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.