- NZD/USD extends trade in tight range, hovers between 20 and 200 day moving averages.
- The pair has edges higher from session lows at 0.7195 and is trading at 0.7223, up 0.14%.
- Rise in the US Treasury bond yields offset positive factors and cap gains.
- Price bounced off 200-DMA at 0.7184 on March 29th day's trade and we see weakness only on break below.
- We see doji formation on daily charts on Friday's trade and upside was capped below 5-DMA.
- Break below 200-DMA will accentuate weakness, scope then for test of 0.7030 (61.8% Fib).
- Focus now on US NFP data due on Friday for further impetus.
Support levels - 0.7185 (nearly converged 200-DMA and 38.2% Fib and cloud base), 0.7153 (March 21 low), 0.71
Resistance levels - 0.7235 (5-DMA), 0.7252 (20-DMA), 0.7281 (23.6% Fib), 0.73
Recommendation: Watch out for break below 200-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -75.2137 (Bearish), while Hourly USD Spot Index was at 26.7822 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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