FxWirePro: NZD/USD capped below strong trendline resistance, focus on FOMC and NZ Q4 GDP for further impetus

NZD/USD chart - Trading View 

• NZD/USD is trading 0.35% higher on the day at 0.6867 at 0630 GMT. Broad-based US dollar weakness supporting upside.
   
• The pair finds stiff resistance at 0.6870 (trendline). Break above could see further upside.
   
• Kiwi likely to remain under pressure after NZIER lowered both growth and interest rate forecast ahead of domestic GDP release, due this Wednesday. 
   
• NZIER expects the annual GDP to peak at 2.9 percent from the year to March 2021 before moderating to 2.5 percent in the following year. 
   
• Further, interest rate forecasts have been revised down throughout the projection period. 
   
• Technical studies for the pair are still holding a slightly bullish bias. Break above 0.6870 could see gains upto 0.6915. 
   
• GDP data is expected to show the growth rate ticked higher to 0.6 percent q/q r in Q4 from 0.3 percent in Q3. 
   
• Focus also on FOMC meeting for further impetus. A dovish Fed could provide further wings to the pair.

Support levels - 0.6850 (5-DMA), 0.6827 (21-EMA), 0.6809 (55-EMA)

Resistance levels - 0.6870 (trendline), 0.69, 0.6915 (trendline)

Recommendation: Watch out for break above 0.6870 to go long.

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