FXWIREPRO: NZD/USD Holds Above Strong Support at 0.6880, Good to Buy Dips

FXWIREPRO: NZD/USD Holds Above Strong Support at 0.6880, Good to Buy Dips

• Broad based US dollar strength and downbeat NZ business confidence data adds to bearish pressure on the bird. 
• ANZ NZ business confidence 3.2% in March vs 7.1% in February. NZ own activity outlook for March 29.4% vs 25.5% in February. 
• Tumbling commodities’ prices, particularly oil and copper prices, also weighed on the resource currency. 
• US oil is down -1.25%, Brent slides -0.90%, while the copper prices shed 0.55%. 
• NZD/USD paused its 3-day rally to multi-month tops at 0.6965 and now extends the retreat below the 0.69 handle. 
• On the technical side, the pair has closed above strong resistance at 0.6880 on Wednesday's trade, and is currently holding above that level. 
• Indicators suggest upside for the pair, we see a bullish 5-DMA crossover on 10-DMA, Stochs and RSI are biased north and momentum positive on the MACD indicator. 
• Immediate support lies at 0.6880 (trendline resistance turned support), while resistance is located at 0.6924 (June 25th highs) and then 0.6965 (Mar 30th highs) ahead of 0.70. 
• We stick to our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-edges-lower-from-3-month-highs-of-06883-bias-higher-186223). Hold for targets. 
  

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