FxWirePro: NZD/USD trades narrow range, bias lower, stay short

• NZD/USD is trading in a narrow range, below 5-DMA.
   
• Markets ignores better-than-expected NZ employee confidence, building consents and ANZ March activity report.
   
• Spot also failed to benefit from upbeat Chinese services and manufacturing PMI reports.
   
• Treasury yields retreated, in response to Trump’s comments, citing that he is studying ways to 'punish' currency manipulators, stalling upside in the USD.
   
• Bearish bias in the pair remains intact, scope for test of 0.6895 (trendline support).
   
• Price action is below major moving averages and daily cloud, technicals also bearish on intraday charts.
   
• US economic releases and a slew of Fedspeaks due later in the NA session will be in focus.

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 - 0.7014 (5-DMA), 0.7058 (61.8% Fib), 0.7088 (100-DMA)

Call update: We had advised a short call (http://www.econotimes.com/FxWirePro-NZD-USD-capped-below-major-trendline-resistance-good-to-go-short-on-rallies-617244). 

Recommendation: Our call is progressing well. We recommend holding for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 21.0112 (Neutral), while Hourly USD Spot Index was at 33.6633 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.