FxWirePro: NZD/USD rejected at 20-DMA (0.6939), good to short rallies

• NZD/USD rejected at 20-DMA at 0.6939, we see upside only on break above.
   
• Technical studies are turning bearish, only break above 20-DMA at 0.6953 could see further upside.
   
• Price action has slipped below 5-DMA at 0.6930, scope nor for test of major trendline support at 0.6818. Violation there could see further downside.
   
• Markets will keep a close watch on the NZ politics amid a lack of key fundamental news from New Zealand.
   
• Focus also on US CPI, retail sales and industrial production data along with several speeches by FOMC members, including Janet Yellen.

Support levels - 0.69, 0.6818 (double bottom), 0.68, 0.6716 (61.8% Fib of 0.6196 to 0.75580 rally)

Resistance levels - 0.6930(5-DMA), 0.6939 (20-DMA), 0.6968 (May 3rd high), 0.7038 (38.2% Fib of 0.61968 to 0.7558 rally)

Recommendation: Good to go short on rallies around 0.6920/30, SL: 0.70, TP: 0.6875/ 0.6820/ 0.6720.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -107.973 (Bearish), while Hourly USD Spot Index was at 7.32932 (Neutral) at 0910 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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