- NZD/USD is testing 100-DMA resistance, break above will see further upside.
- Technical studies on daily and weekly charts are bullish.
- Bullish RSI divergence seen on daily charts. RSI is also strong at 58 levels with room to run.
- The pair finds next major resistance at 0.7228 (50% Fib) and major support at 0.7102 (20-DMA).
- Fed funds rate hike to a 0.50%-0.75% range is widely priced in by markets, Yellen’s press conference will be watched for any surprises.
- Support levels - 0.7202 (100-DMA), 0.7180 (5-DMA), 0.7167 (38.2% Fib)
- Resistance levels - 0.7228 (50% Fib), 0.7232 (Dec 13 high), 0.7265 (Oct 20 high), 0.7289 (61.8% Fib)
Recommendation: Good to long on decisive breakout above 100-DMA at 0.7202, target 0.7290/ 0.73
FxWirePro's Hourly NZD Spot Index was at 82.7856 (Slightly bullish), while Hourly USD Spot Index was at -77.9724 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
