- NZD/USD extends retail sales-led recovery gains, breaks above 0.69 handle.
- Data released earlier on Monday showed that NZ retail sales volumes increased a seasonally adjusted 1.5%, well above 0.6% growth recorded in the previous quarter.
- Markets brushed aside mixed China data dump, while a broadly weaker USD supporting the bid tone surrounding the major.
- The pair finds strong trendline support at 0.6830, weakness only on break below.
- On the upside 20-DMA at 0.6926 is stiff resistance. Downside intact as long as pair holds 20-DMA resistance.
- Bullish RSI divergence keeps alive scope for upside. A break above 20-DMA at 0.6926 will see some upside momentum.
- Pair eyes 50-DMA at 0.6963 on break above 20-DMA.
Support levels - 0.6886 (5-DMA), 0.6830 (trendline), 0.6806 (Apr 27 2016 low), 0.6759 (Apr 5 2016 low)
Resistance levels - 0.6926 (20-DMA), 0.6960 (trendline), 0.6963 (50-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -46.7532 (Neutral), while Hourly USD Spot Index was at -141.53 (Bearish) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
