FxWirePro: NZD/USD finds major resistance at 0.7055, break above to see further upside

• Kiwi slipped marginally as an initial reaction post NZ budget announcement.
   
• The pair has pared losses from lows at 0.7033 to currently trade at 0.7047.
   
• Stiff resistance is seen at 0.7055 (converged trendline and 100-DMA), break above could see further upside.
   
• The US yields and greenback were hit broadly by a dovish and cautious tone reflected by the FOMC in its minutes released late-Tuesday.
   
• The 2-year treasury yields, which mimic the interest rate expectations, hurt the most, while the US 10-years finished -1.00%.

Support levels - 0.7006 (5-DMA), 0.6965 (50-DMA), 0.6958 (5-DMA), 0.6906 (20-DMA), 0.6817 (May 11 low)

Resistance levels - 0.7030 (38.2% Fib of 0.7375 to 0.6818 fall), 0.7054 (100-DMA), 0.7096 (50% Fib), 0.7113 (200-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-extends-upside-for-2nd-consecutive-session-holds-above-20-DMA-bias-higher-714400) has hit all targets.

Recommendation: Book partial profits at highs, raise trailing stops to 0.70, target 0.7080/ 0.71

Fresh longs are recommended only on break above 0.7055, SL: 0.70, TP: 0.7080/ 0.71/ 0.7115

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 103.243 (Bullish), while Hourly USD Spot Index was at -57.0686 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.