- NZD/USD wiped-out losses and turned positive on China trade which showed that Chinese domestic demand is slowly picking-up.
- The pair has taken cloud support and broken above major trendline resistance at 0.6950 on Tuesday's trade.
- Technicals support upside in the pair, Stochs and RSI point north, bullish momentum seen on MACD.
- Pair is testing 0.70 handle, we see scope for gains upto 0.7050 which is a major hurdle. Break above could see test of 0.71 levels.
- Support on the downside is seen at 0.6931 (5-DMA), 0.6907 (cloud top), 0.6885 (5-DMA) and further below at 0.6847 (50-DMA).
- RBNZ policy decision on Thursday is a major risk event. Expectations are for the central bank to stand pat.
Recommendation: Good to buy dips in the pair around 0.6975/85 levels, SL: 0.69, TP: 0.7050/ 0.71
