FxWirePro: NZD/USD breaks above 200-DMA to hit 5-month high above 0.69 handle, bias higher

NZD/USD chart on Trading View used for analysis

• NZD/USD is extending bullish gap open on Monday, bias remains higher.
   
• The antipodeans remain buoyed after US President Trump and his Chinese counterpart Xi reached a temporary trade ceasefire agreement at the G20 meeting over the weekend.
   
• While the temporary pause in the trade war has put a strong bid under the antipodeans, slight improvement in China Caixin manufacturing PMI for November adds support.
   
• Data released earlier today showed China Caixin PMI reading managed to beat expectations, printing at 50.2 versus the forecast 50.0 (last 50.1).
   
• NZD/USD has broken above 200-DMA and is on track for further upside. Technical studies support gains.
   
• Next major resistance lies at 0.6975 (110-W EMA) ahead of 0.6985 (200-W SMA). Break above targets 61.8% Fib at 0.7050.
   
• On the flipside, retrace below 200-DMA to see grind lower. 

Support levels - 0.6862 (converged 5 and 200 DMA), 0.6811 (38.2% Fib), 0.6753 (Nov 27 low)

Resistance levels - 0.6930 (50% Fib), 0.6975 (110-W EMA), 0.6985 (200-W SMA)

Recommendation: Good to go long on dips around 0.69, SL: 0.6850, TP: 0.6930/ 0.6975/ 0.6985

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.