FxWirePro: NZD/USD finds major trendline resistance at 0.7050, good to go short on rallies

• NZD/USD is trading an extremely narrow range in the Asian session, with a high of 0.7049 and a low of 0.7037.
   
• Major trendline resistance seen at 0.7050, only break above could see further upside.
   
• Technical studies are neutral, 20-DMA is sharply inclined lower and RSI remains below 50, raising scope for downside.
   
• The pair is currently hovering around 5-DMA at 0.7036. Break below finds next support at 0.7005 (20-DMA).
   
• With RBNZ sidelined and little major economic data, focus shall remain on US dollar dynamics for further impetus.

Support levels - 0.7005 (20-DMA & 23.6% Fib of 0.6890 to 0.73756 rally), 0.6994 (Mar 23 low), 0.6945 (trendline)

Resistance levels - 0.7050 (trendline), 0.7075 (38.2% Fib), 0.7090 (Mar 21 high)

TIME  TREND INDEX  OB/OS INDEX    

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

Recommendation: Good to go short on rallies around 0.7045, SL: 0.71, TP: 0.70/ 0.6975/ 0.69

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -9.10196 (Neutral), while Hourly USD Spot Index was at -49.3946 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.