- NZD/USD holds above 5-DMA support, trades largely unchanged at 0.7244 at the time of writing.
- Bullish divergence on Stochastic keeps scope for upside in the pair.
- 20-DMA is major resistance on the upside, break above could see further gains.
- Break below 5-DMA support finds next major support at 0.72 (trendline).
- Technical studies are bearish. We see scope for test of 100-DMA at 0.7180 on break below 0.72 handle.
- Technical studies on weekly charts are also bearish. RSI and Stochs are biased lower, MACD is no verge of bearish crossover on signal line.
- Break below 100-DMA at 0.7180 could see drag till 0.71 levels (61.8% Fib retrace of 0.68176 to 0.7558 rally).
Support levels - 0.7240 (5-DMA), 0.72, 0.7180 (100-DMA), 0.7131 (200-DMA)
Resistance levels - 0.7275 (38.2% Fib), 0.7295 (20-DMA), 0.7329 (50-DMA)
Recommendation: Watch out for break above 20-DMA for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -39.1374 (Neutral), while Hourly USD Spot Index was at -67.1225 (Neutral) at 1010 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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