FxWirePro: NZD/USD finds strong support at 0.7185, break below to accentuate weakness

• NZD/USD slips back below 0.72 handle, trades 0.27% lower on the day as we write.
   
• The major weighed down as the US Dollar extends gains across the board on upbeat data overnight.
   
• US GDP exceeded expectations, came in at 2.7% versus 2.9% forecasted by analysts. 
   
• Further, the PCE Index, preferred by the Federal Reserve, came in line with expectations at 2.9% for the fourth quarter of 2017.
   
• A wave of optimism as the tensions ease between US and China over trade tariffs is also supporting the US dollar.
   
• NZD/USD now finds strong support at 0.7185 (converged 200-DMA and 38.2% Fib). 
   
• Technical studies are bearish, break below 0.7185 will accentuate weakness.
   
• On the flipside, a decisive break above 20-DMA at 0.7255 will invalidate bearish bias.

Support levels - 0.7185 (converged 200-DMA and 38.2% Fib), 0.7136 (cloud base), 0.71

Resistance levels - 0.72, 0.7242 (5-DMA), 0.7255 (20-DMA), 0.7281 (23.6% Fib), 0.73

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-fails-at-073-handle-good-to-go-short-on-close-below-5-DMA-1225957) has hit TP1/2.

Recommendation: Book partial profits at lows. Watch out for break below 200-DMA for further weakness. 

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.