- NZD/USD extends gains above 5-DMA, intraday bias remains bullish.
- Kiwi buoyed by improved risk appetite and better New Zealand trade data.
- New Zealand's latest Trade Balance figures for Feb released by Statistics New Zealand showed a surplus of $217 million.
- Details of the report showed exports rose $446 million, or 11%, to $4.5 billion compared to the previous February, while Imports also climbed $187 million to an all-new February high of $4.2 billion.
- Further, broad-based US dollar weakness combined with the RBNZ efforts to achieve its mandate of 1-3 percent inflation goal keeps the pair supported.
- Focus now on Fedspeaks from Quarles, Dudley and Mester for fresh policy insights.
- Also, focus remains on New Zealand’s ANZ business confidence and US CB consumer confidence data for the next trading impetus.
- The pair failed to extend weakness below 200-DMA and now finds strong resistance at 50-DMA at 0.7292.
- Technical indicators are turning bullish. Break above 50-DMA could see test of 0.7435 (major trendline resistance).
Support levels - 0.7225 (5-DMA), 0.72, 0.7184 (200-DMA)
Resistance levels - 0.7281 (23.6% Fib), 0.7292 (50-DMA), 0.7354 (Mar 13, 14 high)
Recommendation: Good to go long on breakout above 0.73 handle, SL 0.7225, TP: 0.7354/ 0.74/ 0.7435
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