• FxWirePro: NZD/USD capped below 0.73 handle, strong China trade data fails to boost antipodeans

    Source: FxWire Pro - Technicals / 08 Mar 2018 01:38:23   Eastern Standard Time

    • NZD/USD is trading in an extremely narrow range, capped below 0.73 handle.
    • Upbeat Chinese trade data released earlier today failed to boost the antipodean.
    • China trade surplus rose CNY 224.9 billion in February beating consensus estimate had called for a deficit of CNY 70 billion.
    • Details of the report showed exports surged 36.2 percent and imports dropped 0.2 percent.
    • Fears of Trump's tariff plan and the resulting trade wars keeping sentiment subdued.
    • Technical studies support upside, RSI on dailies is holding above 50 levels and Stochs are showing a rollover from near oversold levels.
    • Price hovers around 20-DMA resistance at 0.7297, decisive break above could see further upside.
    • Scope then for test of immediate resistance at 0.7435 (trendline) ahead of 0.7558 (July 27 high).
    • On the flipside, rejection at 20-DMA could see weakness till 0.7234 (55-EMA). Violation at 110-EMA could see major weakness.

    Support levels - 0.7266 (5-DMA), 0.7235 (55-EMA), 0.7183 (110-EMA)

    Resistance levels - 0.73, 0.7341 (61.8% Fib retrace of 0.7437 to 0.7186 fall), 0.74

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-finds-stiff-resistance-at-07255-good-to-go-long-above-07265-1185213) has hit TP1.

    Recommendation: Watch out for decisive break above 0.73 for further upside, target 0.7340/ 0.74/ 0.7435.

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