- Data released earlier today showed a drop in the trade surplus.
- Fall in exports underscores weakness in the economy and only adds to the bets of RBNZ rate cut in August.
- NZD/USD has largely ignored weak trade data and extended gains.
- Upside is holding above 0.70 handle, finds stiff resistance by 50-DMA at 0.7014.
- Break above will see next major hurdle at 0.7078 (10-DMA).
- Strong support seen at 0.6955 (trendline), weakness only on break below.
Recommendation: Good to go long on break above 0.7014, SL: 0.6985, TP: 0.7075