- NZD/USD has shown a breakout at major trendline resistance at 0.6810, bias higher.
- The pair has hit 2-week highs at 0.6850 before paring some gains to currently trade at 0.6821.
- Upside finds immediate resistance at 23.6% Fib at 0.6854 ahead of 50-DMA at 0.6880.
- Technical indicators on daily charts are turning bullish. Break above 0.6810 will likely propel the pair higher.
- We evidence bullish divergence on RSI and Stochs which keeps scope for upside in the pair.
- Focus now shifts towards the US US Q2 GDP figures slated for release this Friday.
Support levels - 0.6809 (5-DMA), 0.6787 (20-DMA), 0.6713 (July 19 low), 0.6685 (trendline)
Resistance levels - 0.6855 (23.6% Fib), 0.6880 (50-DMA), 0.69
Recommendation: Good to go long on dips around 0.68/ 0.6810, SL: 0.6750, TP: 0.6855/ 0.6880/ 0.69
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 52.2825 (Neutral), while Hourly USD Spot Index was at -47.798 (Neutral) at 0945 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
