FxWirePro: NZD/USD rejected at daily cloud, hovers around 20-DMA at 0.7239

• NZD/USD failed to hold break into daily cloud on Friday's trade.
   
• The pair closed below the cloud and is extending weakness on the day.
   
• Downward revision of the inflation forecasts only added fuel to downside in the pair.
   
• The New Zealand Institute of Economic Research (NZIER) revised its 2017/18 inflation forecasts to 1.1% (previous 1.5%), while growth forecast was revised slightly lower to 2.9% (previous 3.1%).
   
• The inflation is seen rising 1.9% in 2018/19 as opposed to the previous forecast of 2%, while the growth forecast has been revised higher to 3.4% from 3.1%.
   
• Price action now hovers around 20-DMA at 0.7239, downside is holding weekly 20-SMA support at 0.7225.
   
• We see further weakness on break below weekly 20-SMA, drag till 200-DMA at 0.7136 then likely.

Support levels - 0.7239 (20-DMA), 0.7235 (5-DMA), 0.7225 (Weekly 20-DMA)

Resistance levels - 0.73, 0.73373 (Double top), 0.7391 (weekly 200-SMA), 0.7416 (Aug 7 high)

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