- NZD/USD spiked on upbeat economic assessment by the RBNZ at its monetary policy meeting today.
- Upside in the pair pauses at strong trendline resistance at 0.7270, further upside only on break above.
- Bearish Stochastics divergence and fading momentum on MACD suggest exhaustion at highs.
- Break above 0.7270 targets 0.7342 (78.6% Fib 0.7485 to 0.6817 fall) and then 0.7375 (Feb 7 high).
- On the flipside, immediate support is seen at 0.72 (23.6% Fib of 0.6818 to 0.7319 rally).
- Break below 0.72 could see drag till 200-DMA at 0.7099.
Support levels - 0.7237 (5-DMA), 0.72 (23.6% Fib of 0.6817 to 0.7319 rally), 0.7185 (June 15 low)
Resistance levels - 0.7270 (trendline), 0.73, 0.7319 (June 14 high)
Recommendation: Good to go short on break below 0.72, SL: 0.7240, TP: 0.7170/ 0.7130/ 0.71
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 43.3504 (Neutral), while Hourly USD Spot Index was at -60.8108 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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