FxWirePro: NZD/USD extends cloud breakout, on track to test trendline resistance at 0.6880

NZD/USD chart - Trading View 

• NZD/USD is trading 0.18% higher at 0.6842 at 0455 GMT, intraday bias higher.
   
• Antipodeans buoyed amid improved risk sentiment after fresh US-China trade talks.
   
• The pair is extending gains for the 3rd straight session and has shown a break above daily cloud.
   
• Momentum with the bulls. RSI has edged above 50 and Stochs have rolled over from oversold levels.
   
• Strong support seen at 20-DMA at 0.6827. Trendline resistance at 0.6880 in sight ahead of 0.6925.
   
• Retrace below 20-DMA can see dip till daily cloud. Bearish invalidation likely below 200-DMA.
   
• Focus will be on monthly inflation figures from the US. The consumer price index (CPI) is likely to remain unchanged at 1.6% y/y. 
   
• Core CPI is expected to remain unchanged at 0.2% and 2.2% m/m and y/y respectively.

Support levels - 0.6828 (20-DMA), 0.6816 (21-EMA), 0.68 (converged 5-DMA and 55-EMA)

Resistance levels - 0.6880 (trendline), 0.6928 (trendline), 0.6941 (Feb 1st high)

Recommendation: Good to go long on dips around 0.6830/40, SL: 0.68, TP: 0.6880/ 0.6920/ 0.6940.

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