FxWirePro: NZD/USD rejected at channel top, drag till 20-DMA at 0.7132 likely

• NZD/USD was rejected at channel top at 0.7275, hovers around 5-DMA at 0.7223.
   
• The pair is consolidating weak New Zealand GDP led slump, is trading slightly higher on the day.
   
• An up-tick in Business NZ Manufacturing Index likely prompted some short-covering move.
   
• Technical indicators have turned slightly bearish, we see rollover on RSI and Stochs from overbought levels.
   
• 20-DMA is still biased higher, we see major reversal only on break below 20-DMA currently at 0.7132.

Support levels - 0.72, 0.7151 (50% Fib of 0.7485 to 0.6817 fall), 0.7132 (20-DMA)

Resistance levels - 0.7224 (5-DMA), 0.7230 (61.8% Fib), 0.7270 (Channel top), 0.73, 0.7342 (78.6% Fib)

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-extends-post-FOMC-slide-Kiwi-dumped-on-New-Zealand-GDP-miss-757176).

Recommendation: Bias lower, hold for downside. Bearish invalidation above channel top at 0.7270

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -48.4964 (Neutral), while Hourly USD Spot Index was at 3.59034 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.