FxWirePro: NZD/USD hovers around 61.8% Fib, breakout at major trendline (0.7180) keeps scope for upside

• NZD/USD has shown a decisive breakout at trendline resistance at 0.7180.
   
• Upside is currently struggling at 61.8% Fib retrace of 0.7558 to 0.6780 fall at 0.7261.
   
• The pair has edged lower from 4-month highs at 0.7276, finds minor resistance at Sept 26 high at 0.7277.
   
• Technical indicators still bullish, we do not see any signs of reversal. Next bull target is 0.7345 levels.
   
• We see a series of resistances around 0.7345, break there will then target 78.6% Fib at 0.7391.
   
• Break below immediate support at 5-DMA could see drag till 200-DMA at 0.7112.
   
• Violation at 200-DMA invalidates bullish bias, scope then for retrace till 20-DMA.

Support levels - 0.7208 (5-DMA), 0.7112 (200-DMA), 0.7097 (20-DMA)

Resistance levels - 0.7261 (61.8% Fib retrace of 0.7558 to 0.6780 fall), 0.7277 (Sept 26 high), 0.7285 (200W SMA), 0.7391 (78.6% Fib)

Recommendation: Good to go long on dips around 0.7230/40, SL: 0.7160, TP: 0.7275/ 0.73/ 0.7345/ 0.7390.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 85.0115 (Slightly bullish), while Hourly USD Spot Index was at -74.2917 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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