FxWirePro: NZD/USD on track to test channel top at 0.7285, stay long

Fundamental Factors:

• The Standard & Poor's, credit rating agency affirmed New Zealand's ‘AA’ foreign currency rating and AA+ local currency long-term sovereign credit rating and said its outlook remains stable.
• A strong reading of China’s gross domestic product (GDP) to keep commodity currencies supported. 
• Data showed China’s economy expanded 6.8 percent for the whole year of 2016

Technical Analysis:

• NZD/USD recovers Yellen-induced slump, extends gradual grind higher.
• The pair has edged lower from session highs at 0.7225.
• Downside remains cushioned by 5-DMA at 0.7166, break below could see weakness upto 0.7091 (200-DMA).
• Technicals support upside, we see scope for test of channel top at 0.7285.

Major support levels - 0.71 (38.2% Fib of 0.7485 to 0.6862 fall), 0.7089 (200-DMA), 0.7070 (Double bottom - Jan 13 & dec 5)

Major resistance levels - 0.7168 (cloud base), 0.7173 (50% Fib), 0.7187 (cloud top)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-finds-strong-support-at-200-DMA-weakness-only-on-break-below-496026) has hit TP1&2.

Recommendation: Bias higher. Book partial profits, stay long.