FxWirePro: NZD/USD erases gains, close below 20-DMA keeps downside intact

• Kiwi erases most gains fails to benefit from higher oil prices and Moody’s upbeat remarks on New Zealand’s AAA.
   
• Slightly weaker GDT price index, deterioration in risk environment amid renewed weakness seen in the Asian equities weighing on the Kiwi.
   
• Fall in the NZ business morale in Q1 2017 also collaborating to the downbeat tone around the Kiwi. 
   
• Technically, upside in the pair rejected at major resistance at 0.7015.
   
• The pair has closed below 20-DMA and edged below 0.6972 (78.6% Fib) affirming near-term downside bias. 
   
• Next major support is seen at trendline at 0.69.

Support levels - 0.6920 (88.6% Fib), 0.69 (trendline), 0.6890 (Mar 9 low) 

Resistance levels - 0.6997 (20-DMA), 0.6991 (5-DMA), 0.7015 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-capped-below-major-trendline-resistance-good-to-go-short-on-rallies-617244) has hit TP1.

Recommendation: Bias lower, hold for further downside. 

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 10.9964 (Neutral), while Hourly USD Spot Index was at 89.052 (Bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.