FxWirePro: NZD/USD trims weak inflation data led losses, decisive breach at channel base targets 61.8% Fib

NZD/USD chart - Trading View 

Fundamental News:
-  Data released earlier today showed New Zealand inflation fell to it’s lowest reading since Q3 2018.
- At 1.5% YoY, CPI missed forecasts of 1.7%. Furthermore, QoQ was just 0.1% vs 0.3% expected.
- CPI miss raises the probability of a live RBNZ meeting in May, keeping the kiwi under pressure.
- RBNZ shifted to a dovish stance in March meeting, adding into their statement that “the next OCR direction is more likely to be down”.
- Upbeat Chinese data supporting recovery in the pair. Bigger-than-expected jump seen in industrial production while the Q1 GDP numbers remained steady.

Technical Analysis:
- Price action below cloud and major EMAs on the daily chart.
- Trades in a sloping channel pattern and beach at channel base to see further downside.
- The pair is holding support at 200-DMA, break below eyes 61.8% Fib at 0.6632.
- Upside capped at 21-EMA, break above to see minor upside. Break above 100-DMA negates bearishness.

Support levels - 0.6732 (200-DMA), 0.6715 (channel base), 0.6632 (61.8% Fib)
Resistance levels - 0.6777 (21-EMA), 0.6789 (converged 20-DMA and 110-EMA), 0.68

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