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    NZD/USD rises to 0.7040, eyeing GDT Price Index and FOMC statement Haresh Menghani

    After bottoming out around mid-0.6900 level earlier during Asian session, the NZD/USD pair remained well bid and touched a daily peak level of 0.7046 before trimming its gains to currently trade around 0.7035 level.As we move closer to the release of GDT Price Index, which measures the change in the average price of dairy products sold at auction, the pair seems to gain traction. However, any further strong up-move seems unlikely in wake of the upcoming FOMC decision, later during NY trading session. Although the Fed is not expected to announce any rate-hike but a hawkish tone, raising prospects of a rate-hike in July, would certainty be Dollar supportive and drag commodities and commodity-linked currencies, like kiwi, sharply lower. Hence, traders might be reluctant to carry heavy bearish bets against the US Dollar.Wednesday's reversal occurred from an important support marked by a short-term descending trend-channel formation on 1-hourly chart and was led by larger-than-expected current account surplus in the first quarter of 2016. A subsequent break above the trend-channel resistance near 0.7020-25 area pointed to resumption of the pair's prior appreciating move. Hence, from a technical perspective the pair seems poised to gain further in the near-term.Technical levels to watchMomentum above session high level of 0.7046, the pair is likely to immediately head towards 0.7070-75 intermediate resistance before heading towards reclaiming 0.7100 handle and move back towards retesting last week's swing high resistance near 0.7145-50 region.Meanwhile on the downside, the descending trend-channel break-point near 0.7020 level, now seems to act as immediate support. Failure to hold this immediate support and a subsequent break below 0.7000 handle is likely accelerate the downfall immediately towards retesting the trend-channel support, currently near 0.6950 region.


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