- Safe-havens on the rise amid risk-off at expense of the higher-yielding assets such as the NZD, equities, oil etc.
- Fall in the NZ business morale in Q1 2017 also collaborating to the downbeat tone around the Kiwi.
- Focus on NZ GDT price index due later in the NA session for further impetus, futures pricing currently indicating a nil change (probably reflecting little change to auction volume).
- Technically, upside in the pair was once again capped at major resistance at 0.7015.
- Next immediate support seen at 0.6972 (78.6% Fib), break below likely to see test of trendline at 0.69.
Support levels - 0.6972 (78.6% Fib retrace of 0.68621 to 0.73756 rally), 0.6920 (88.6% Fib), 0.6890 (Mar 9 low)
Resistance levels - 0.6995 (20-DMA), 0.7006 (5-DMA), 0.7015 (trendline)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-capped-below-major-trendline-resistance-good-to-go-short-on-rallies-617244) is progressing well.
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -23.5155 (Neutral), while Hourly USD Spot Index was at 129.867 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
