- NZD/USD has paused upside at 0.7375 levels, just shy of 78.6% Fibo.
- The pair is seeing some weakness after weaker-than-expected China inflation readings.
- The official data released earlier in the day showed China's CPI rose 2.1 percent in March vs 2.6 percent expected.
- China's PPI cooled to 3.1 percent, missing the estimate of 3.2 percent and down from the previous month's print of 3.7 percent.
- Bullish momentum is likely to see further upside in the pair. We see scope for test of 0.7391 (78.6% Fib) ahead of 0.7440 (major trendline).
- On the flipside, retrace below 50-DMA could see resumption of weakness till 200-DMA at 0.7183.
Support levels - 0.7315 (5-DMA), 0.7281 (50-DMA), 0.7261 (61.8% Fib)
Resistance levels - 0.7391 (78.6% Fib), 0.7440 (major trendline)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1241975) has hit all targets.
Recommendation: Book full profits at highs. Watch out for break above 78.6% Fib to go long. Target 0.7440.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -16.3831 (Neutral), while Hourly USD Spot Index was at -109.822 (Bearish) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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