FxWirePro: NZD/USD fails to hold gains above 200-DMA, minor weakness upto 0.7060 likely

• NZD/USD was unable to hold gains above 200-DMA, slips below 0.71 handle from session highs at 0.7118.
   
• The pair faded gains on the back of improved NZ business outlook and upbeat Chinese PMI reports.
   
• Renewed oil-price weakness along with rising treasury yields weigh on the spot.
   
• Trend remains bullish, we do not see major signs of reversal.
   
• The pair has broken above daily cloud and is holding above 5-DMA at 0.7065.
   
• Slight weakness seen on intraday charts, drag till 0.7060 (trendline on hourlies) likely.
   
• Weakness likely on close below 5-DMA, scope then for test of 20-DMA at 0.6956.
   
• On the flipside decisive breakout above 200-DMA could see test of 0.7285 (channel top).
   
• Chicago PMI, pending home sales and Beige book along with speech by FOMC member Kaplan will be closely eyed for direction.

Support levels - 0.7065 (5-DMA), 0.7018 (1H 200-SMA), 0.6956 (20-DMA)

Resistance levels - 0.7107 (200-DMA), 0.7150 (March 2 high), 0.72

Recommendation: Watch out for break above 200-DMA to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 69.2301 (Neutral), while Hourly USD Spot Index was at -5.05189 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.