- NZD/USD slips back below 0.72 handle, trades 0.27% lower on the day as we write.
- The major weighed down as the US Dollar extends gains across the board on upbeat data overnight.
- US GDP exceeded expectations, came in at 2.7% versus 2.9% forecasted by analysts.
- Further, the PCE Index, preferred by the Federal Reserve, came in line with expectations at 2.9% for the fourth quarter of 2017.
- A wave of optimism as the tensions ease between US and China over trade tariffs is also supporting the US dollar.
- NZD/USD now finds strong support at 0.7185 (converged 200-DMA and 38.2% Fib).
- Technical studies are bearish, break below 0.7185 will accentuate weakness.
- On the flipside, a decisive break above 20-DMA at 0.7255 will invalidate bearish bias.
Support levels - 0.7185 (converged 200-DMA and 38.2% Fib), 0.7136 (cloud base), 0.71
Resistance levels - 0.72, 0.7242 (5-DMA), 0.7255 (20-DMA), 0.7281 (23.6% Fib), 0.73
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-fails-at-073-handle-good-to-go-short-on-close-below-5-DMA-1225957) has hit TP1/2.
Recommendation: Book partial profits at lows. Watch out for break below 200-DMA for further weakness.
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