FxWirePro: Cloud top capping upside in NZD/USD, breaks above could target 0.6880
NZD/USD has been trading a rising wedge pattern, currently at around 0.6690 levels. We see upside in the pair being capped by daily cloud which currently spans between 0.6737 and 0.6656. Price action in the pair was reje…
NZD/USD has been trading a rising wedge pattern, currently at around 0.6690 levels.
We see upside in the pair being capped by daily cloud which currently spans between 0.6737 and 0.6656.
Price action in the pair was rejected by cloud top and has edged below 200-DMA at 0.6713.
Momentum as indicated by the MACD is definitely with the bulls, but a bearish Stochs crossover at overbought and downward pointing RSI imply some immediate downside.
Breaks below 5-DMA (0.6626) could take the pair to 0.6428 and then 0.6390 (rising trendline) support.
On the upside breaks above cloud top could take the pair to 0.6880 and then 0.69.
Data earlier this week showed GTD price index fell further this month. The economic knock-on to the dairy sector and broader economy will keep pressure on RBNZ to support the economy.
Market focus is likely to remain on the US NFP data due later today, we expect the most likely scenario to be another leg lower for the greenback.
Recommendation: Good to go long on breaks above 0.6740, SL: 0.6620, TP: 0.6880/0.69
