- NZD/USD halted its two consecutive days of gains and turned back into negative territory.
- Broad-based weakness seen in the greenback amid risk-off due to tensions in the Korean peninsula and over US bombing Afghanistan.
- Focus remains on US datasets, including the retail sales and CPI, due later in the NA session for further impetus.
- Technically, the pair has shown a decisive breakout above major trendline resistance at 0.6960.
- Upside is struggling to get past the 20-DMA resistance currently at 0.7001.
- Stochs are biased higher, while RSI remains neutral and below 50-levels.
- We see further gains on breakout above 20-DMA, scope then for test of 0.7075 (38.2% Fib retrace of 0.7375 to 0.6890 fall).
Support levels - 0.6975 (5-DMA), 0.6960 (trendline), 0.6920 (April 10 lows)
Resistance levels - 0.7001 (20-DMA & 23.6% Fib), 0.7069 (Upper Bollinger Band), 0.7075 38.2% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Slightly bearish Neutral
1D Slightly bullish Neutral
1W Neutral Neutral
Recommendation: Good to go long on break above 20-DMA at 0.7001, SL: 0.6950, TP: 0.7075/ 0.71/ 0.7130
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 56.2318 (Neutral), while Hourly USD Spot Index was at -88.7331 (Bearish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
