FxWirePro: Bearish RSI divergence on NZD/USD dailies, break below 5-DMA could see minor weakness

• NZD/USD has retraced from fresh 2-year high at 0.7558 hit on Thursday.
• Bias remains higher as long as the pair holds 5-DMA support. Break below could see minor weakness.
• Less hawkish FOMC decision along with strong NZ data and Fonterra’s price revision to keep the pair supported.
• The pair is extending gains after break above weekly 200-SMA last week. We do not see signs of reversal yet.
• Bearish RSI divergence raises some downside risks. Break below 5-DMA support could see downside upto 20-DMA at 0.7354.

Support levels - 0.7469 (5-DMA), 0.7428 (weekly 200-SMA), 0.7353 (20-DMA)

Resistance levels - 0.7558 (July 27 high), 0.7613 (Feb 2015 high), 0.7697 (Mar 2015 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-triple-top-good-to-long-break-above-major-resistance-at-07431-814851) has hit TP1&2.

Recommendation: Stay long. Watch out for break below 5-DMA for minor weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 80.8939 (Bullish), while Hourly USD Spot Index was at -55.2313 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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