FxWirePro: NZD/USD closes bearish gap open, China trade data and rally in oil prices support

• NZD/USD has filled the bearish gap open in early Asian trade and edged higher to retake the 0.69 handle.
   
• The pair reversed a sharp slump to 0.6888 lows and is now extending gains above 0.69 handle, currently trading at 0.6920.
   
• A rally in oil prices is underpinning the sentiment around the resource-linked kiwi.
   
• The pair also taking cues from upbeat Chinese headline trade data, which showed widening trade surplus in both Yuan as well USD terms.
   
• Chinese inflation figures and RBNZ policy decision due this week will be in focus for further direction.
   
• Broad-based USD strength in wake of Macron victory could cap upside.
   
• Technical studies are biased higher. A potential 'Bearish Cypher' and bullish RSI divergence signal upside.

Support levels - 0.6904 (5-DMA), 0.6840 (trendline), 0.68 (monthly 200-SMA), 0.6780 (trendline),

Resistance levels - 0.6952 (20-DMA), 0.6988 (50-DMA), 0.70

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-holds-minor-trendline-support-at-06940-weakness-only-on-break-below-683462) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 67.8762 (Slightly bullish), while Hourly USD Spot Index was at -48.5366 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.