FxWirePro: NZD/USD consolidates above daily cloud, stay long above 0.6870

NZD/USD chart - Trading View 

• NZD/USD is trading at 0.6859 at 0630 GMT, up 0.10% at the time of writing.
   
• Upside has been capped below strong trendline resistance at 0.6870, further upside only on break above.
   
• Technical studies for the pair are holding a slightly bullish bias. Break above 0.6870 could see gains upto 0.6915. 
   
• Markets focus on New Zealand Q4 GDP data along with FOMC meeting for further impetus.
   
• NZ GDP is expected to show the growth rate ticked higher to 0.6 percent q/q in Q4 from 0.3 percent in Q3. 
   
• The Fed is widely expected to stay pat. Futures market continues to price out the possibility of any further Fed rate hikes in this cycle.
   
• However, there is an increasing chance now up to  30% of a cut by December. A dovish Fed could provide further wings to the pair.
   
• Price action is consolidating above daily cloud and break below will see dip till 200-DMA.

Support levels - 0.6847 (5-DMA), 0.6829 (21-EMA), 0.6810 (55-EMA)

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

Recommendation: Good to go long on decisive break above 0.6870, target 0.69/ 0.6970. 

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