- The pair failed to break below 38.2% Fib retrace of 69.232 to 83.901 rally at 78.30.
- It has bounced off with a hammer formation, hovers around nearly converged cloud base and 100-DMA at 79.79.
- Technical indicators have turned bullish. RSI has bounced off from near oversold levels and Stochs are sharply biased north.
- 5-DMA is showing a turn higher, next immediate resistance seen at 20-DMA at 80.07.
- Upside in the pair finds stiff resistance at 200-DMA at 80.17, further upside only on close above.
- The pair is trading a rising wedge pattern and break below 78 (wedge base) will see next strong support at 77.55 (23.6% Fib retrace of 83.809 to 75.626 fall)
Support levels - 79.34 (5-DMA), 79, 78.30 (38.2% Fib retrace 69.232 to 83.901 rally), 78.15 (rising trendline)
Resistance levels - 80.07 (20-DMA), 80.17 (200-DMA), 80.68 (61.8% Fib of 83.809 to 75.626 fall)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 72.7723 (Neutral), while Hourly JPY Spot Index was at -162.029 (Bearish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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