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FxWirePro: NZD/USD extends break above 50% Fib, outlook bullish

NZD/USD chart - Trading View 

Spot Analysis:

NZD/USD was trading 0.33% higher on the day at 0.7173 at around 08:40 GMT.

Previous Week's High/ Low: 0.7077/ 0.6911

Previous Session's High/ Low: 0.7172/ 0.7076

Fundamental Overview:

A stronger yuan and risk-on mood underpin antipodeans. An unexpected fall in US September Building permits keeping the USD under pressure. 

The People’s Bank of China (PBOC) maintained the one-year loan prime rate (LPR) at 3.85% for the 18th month in a row at its October fixing.

International Monetary Fund’s China mission Chief and Assistant Director in the Asia and Pacific Department, Hedge Berger said that Evergrande risk to China is contained for now. Sentiment buoyed after comments.

Technical Analysis:

- NZD/USD has broken major resistance at 50% Fib, 200-DMA and channel top

- Momentum is strongly bullish, Stochs and RSI are biased higher

- Volatility is high and rising as evidenced by widening Bollinger bands

- MACD and ADX support further upside in the pair

Major Support and Resistance Levels:

Support - 0.7134 (50% Fib), Resistance - 0.7195 (200-month MA)

Summary: NZD/USD trades with a major bullish bias. Price action has broken above 50% Fib at 0.7134. Next major resistance lies at 200-month MA at 0.7195. Decisive break above will open upside. 

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