FxWirePro: NZD/USD bounces off 200-DMA with a Doji formation, bullish resumption likely above 1H 200 SMA at 0.6891

NZD/USD chart on Trading View used for analysis

• NZD/USD has paused downside at 200-DMA support and edged higher.
   
• The pair has formed a Doji at 200-DMA support on Monday's trade and we see weakness only on break below.
   
• On the upside we see stiff resistance at 1H 200 SMA at 0.6891, decisive break above could see upside resumption.
   
• However, the kiwi is likely to struggle to push higher in the current risk-off environment. We see bearish divergence on RSI and Stochs.
   
• Currently, dollar weakness on account of news that Trump is fearing impeachment when Democrats take over the House is supporting the pair higher.
   
• Business NZ will be releasing their data on manufacturing this Friday, which is expected to have a medium impact.
   
• Breakout at 1H 200 SMA will see test of 0.6969 (Dec 4 high) ahead of 0.7050 (61.8% Fib).
   
• On the flipside, breach at 200-DMA could see the pair fall till 0.6746 (nearly converged 110 and 55 EMAs).

Support levels - 0.6852 (200-DMA), 0.6830 (21-EMA)

Resistance levels - 0.6891 (1H 200 SMA), 0.6930 (50% Fib), 0.6969 (Dec 4 high)

Recommendation: Watch out for break above 1H 200 SMA to go long.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.