Refer NZD/USD chart on Trading View
- NZD/USD spikes past 0.67 handle to hit fresh 2-week highs at 0.6720.
- The kiwi was buoyed after New Zealand real retail sales smashed all forecasts to print at +1.1% q/q.
- Also, general improved tone in risk sentiment across markets has helped the bird to recover.
- Technical indicators have turned bullish, RSI and Stochs are biased higher and we see +ve DMI crossover.
- We also evidence a bullish divergence on RSI and Stochs which supports upside.
- Price action has broken above 21-EMA and we see scope for test of 23.6% Fib at 0.6755 ahead of 50-DMA at 0.6769.
- Major trend remains bearish. We do not see scope for much upside from here. Breakout at 50-DMA could change our view.
- 5-DMA is immediate support at 0.6650, break below will see weakness again.
Support levels - 0.6686 (21-EMA), 0.6650 (5-DMA), 0.66
Resistance levels - 0.6755 (23.6% Fib), 0.6769 (50-DMA), 0.68
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1417819) has hit all targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 52.4611 (Neutral), while Hourly USD Spot Index was at -85.0527 (Bearish) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
