19.02.201721:03:00UTC+00Fxwirepro: Nzd/usd on Track to Test 100-Dma at 0.7131, Good to Go Short on Rallies

• NZD/USD rejected at 20-DMA in last week's trade, currently slips below 5-DMA.
• Kiwi falls in early hours of Asia despite upbeat PPI data, bias lower. 
• New Zealand’s Q4 producer price input index came in at +1.0 pct (poll 0.9 pct), while output index was +1.5 pct (poll 0.6 pct).
• Technical studies are biased lower, RSI has slipped below 50 and points south. Stochs are biased lower and MACD supports trend lower. 
• Downside bias in the pair likely to see test of 100-DMA at 0.7131. Violation there could see drag upto 0.7058 (61.8% Fib retrace of 0.6862 to 0.7375 rise).

Support levels - 0.7146 (Feb 15 low), 0.7131 (100-DMA), 0.7114 (50-DMA), 0.7058 (61.8% Fib)

Resistance levels - 0.7192 (5-DMA), 0.72, 0.7246 (20-DMA), 0.7254 (23.6% Fib)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Neutral                Neutral  
   
Recommendation: Good to short on rallies around 0.7175/80, SL: 0.7250, TP: 0.7130/ 0.71/ 0.7060