FxWirePro: NZD/USD holds above 20-DMA support at 0.6998, weakness only on break below

• NZD/USD is trading a narrow range in the Asian session today as the Kiwi tracked the commodities and Aussie lower.
   
• Upbeat China data dump which showed upbeat GDP, industrial growth, fixed asset investment and retail sales is likely to keep downside cushioned.
   
• Focus remains now remains on the US data flow and NZ GDT price index for next direction on the major along with the New Zealand Q1 CPI data this Thursday.
   
• Technically, the pair has shown a decisive breakout above major trendline resistance at 0.6960.
   
• Stochs and RSI are biased higher, scope for test of 0.7075 (38.2% Fib retrace of 0.7375 to 0.6890 fall).
   
• 20-DMA at 0.6998 is strong support on the downside, we see weakness only on break below.

Support levels - 0.3998 (20 & 5-DMA), 0.6960 (trendline), 0.6920 (April 10 lows)

Resistance levels - 0.7056 (50-DMA), 0.7075 (38.2% Fib), 0.7090 (March 21 high), 0.71, 0.7139 (200-DMA)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-20-DMA-caps-upside-in-NZD-USD-good-to-go-long-on-break-above-644106).

Recommendation: Bias higher, stay long.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 104.644 (Bullish), while Hourly USD Spot Index was at -49.3173 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.