- NZD/USD has shown a break above major channel top resistance at 0.7280.
- Upside in the pair has paused at 78.6% Fib of 0.74854 to 0.68176 fall, break above to see further upside.
- Scope then for test of weekly 200-SMA at 0.7442. Technical indicators on weekly charts also support upside.
- Bearish divergences on RSI and Stochs are keeping scope for downside correction in the major.
- Close below 5-DMA at 0.7297 likely to see test of 20-DMA at 0.7240. Violation there could see further downside.
Support levels - 0.73, 0.7297 (5-DMA), 0.7280 (trendline), 0.7240 (20-DMA), 0.72
Resistance levels - 0.7342 (78.6% Fib retrace of 0.74854 to 0.68176 fall), 0.7375 (Feb 7 high), 0.74 (88.6% Fib), 0.7442 (weekly 200-SMA)
Recommendation: Good to go long on break above 78.6% Fib at 0.7342, SL: 0.7295, TP: 0.74/ 0.7440
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -70.9388 (Neutral), while Hourly USD Spot Index was at -53.7952 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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