FxWirePro: NZD/USD hovers around channel top at 0.7275, focus on RBNZ rate decision and GDT auction

• NZD/USD hits 3-day high of 0.7298 in Asia, extending Friday’s rally from the low of 0.7194. 
   
• USD offered across the board following the release of a disappointing housing data and Michigan confidence number on Friday.
   
• Rising expectations that the Fed will scale back its interest rate projections on the back of disappointing data weighing on the Greenback.
   
• The pair has edged lower from session highs and is hovering around channel top at 0.7275, only decisive break above could see further gains.
   
• Break above 0.7275 targets 0.7342 (78.6% Fib) and then 0.7375 (Feb 7 high).
   
• Bearish Stochastics divergence and fading momentum on MACD suggest exhaustion at highs.
   
• The focus this week is on the RBNZ rate decision and GDT auction. 
   
• The central bank is widely expected to stay pat and repeat “monetary policy will remain accommodative for a considerable period”.

Support levels - 0.7246 (5-DMA), 0.7230 (61.8% Fib of 0.7485 to 0.6817 fall), 0.72

Resistance levels - 0.73, 0.7319 (June 14 high), 0.7342 (78.6% Fib)

Recommendation: We expect some consolidation at highs. Prefer to wait for clear directional bias.