FxWirePro: NZD/USD rallies to test 200-DMA, upbeat New Zealand inflation data buoys kiwi

NZD/USD chart on Trading View used for analysis

• NZD/USD is extending retrace from 2-week lows at 0.6707 hit on Tuesday's trade.
   
• The pair is trading 0.27% higher on the day at 0.6767 at 0400 GMT.
   
• The bird buoyed after New Zealand inflation numbers surprised to the upside.
   
• That said, the beat was marginal at best and it is unlikely to shift the status quo at the RBNZ.
   
• Deteriorating global growth picture and recent IMF warnings/ downgrades could keep upside limited.
   
• Technical bias remains bearish, price action below major moving averages, 5-DMA is sharply lower.
   
• 200-DMA is major resistance at 0.6777 and any meaningful upside only on decisive break above.
   
• Immediate support lies at 5-DMA at 0.6750. Break below eyes cloud base support at 0.6697. Violation there will see drag till trendline support at 0.6640.

Support levels - 0.6750 (nearly converged 5-DMA and 110-EMA), 0.6697 (cloud base), 0.6640 (trendline)

Resistance levels - 0.6777 (200-DMA), 0.68, 0.6848 (Jan 15 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.