FxWirePro: NZD/USD recovers dismal NZ trade data led slump, retakes 0.73 handle, bias higher

• Earlier in the Asian session, the Kiwi slumped sharply after the NZ trade data showed a massive shrink in the country’s trade surplus.
   
• New Zealand’s merchandise trade surplus narrowed to $103m in May, widely missing forecasts at $419m.
   
• NZD/USD hit lows of 0.7275 but downside held 5-DMA support at 0.7270.
   
• The pair has since recovered losses and has reclaimed the 0.73 handle. Bias higher. 
   
• Upbeat Chinese industrial profits data and better appetite for risk assets to keep the Kiwi supported.
   
• Technical indicators are biased higher, RSI strong at 68 levels and points north.
   
• Focus on US data and Fed Chair Yellen’s speech for further impetus.
   

Support levels - 0.7270 (5-DMA), 0.7230 (61.8% Fib of 0.74854 to 0.68176 fall), 0.7210 (20-DMA)

Resistance levels - 0.7342 (78.6% Fib), 0.7375 (Feb 7 high), 0.74

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-trendline-resistance-at-07260-bias-higher-stay-long-772054) has hit TP1.

Recommendation: Book partial profits at highs. Raise trailing stop to 0.7270, stay long for 0.7340

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 151.843 (Bullish), while Hourly USD Spot Index was at -57.9965 (Neutral) at 0512 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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