FxWirePro: NZD/USD breakout at 200-DMA raises scope for further upside, 0.72 handle in sight

• NZD/USD spikes past 200-DMA on Thursday as kiwi was buoyed by solid China services PMI.
   
• NZD/USD erased losses and swung back into the positive territory after China services PMI came in above forecasts.
   
• Data followed the release of upbeat Chinese Caixin manufacturing PMI on Wednesday.
   
• The US dollar failed to extend its recovery mode against its major peers, thereby, lifting the sentiment around most majors.
   
• Breakout at 200-DMA has raised scope for further gains and the pair now eyes 0.72 handle.
   
• Focus now on US NFP data slated for release in the NA session for further impetus.

Support levels - 0.7122 (5-DMA), 0.7107 (200-DMA), 0.7060 (100-DMA)

Resistance levels - 0.7169 (50% Fib retrace of 0.7558 to 0.67804 fall), 0.7190 (Trendline and Oct 17 high), 0.72, 0.7261 (61.8% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-200-DMA-at-07104-breakout-to-see-further-upside-1076181) has hit TP1.

Recommendation: Bias higher, hold for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 159.475 (Bullish), while Hourly USD Spot Index was at -117.416 (Bearish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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