- NZD/USD extends spike on upbeat economic assessment by the RBNZ at its June monetary policy meeting.
- The central bank continues to be upbeat on the domestic economy’s outlook in spite of the recent lower than anticipated first quarter GDP result.
- Upside in the pair has shown a break above strong trendline resistance at 0.7260, intraday bias higher.
- The pair has taken support at 5-DMA at 0.7247, we see weakness on close below.
- Momentum studies are bullish, RSI at 67 levels and biased higher. Stochs are point north.
- Bearish Stochastics divergence and fading momentum on MACD could limit upside.
Support levels - 0.7260 (trendline), 0.7247 (5-DMA), 0.7230 (61.8% Fib of 0.7485 to 0.6817 fall)
Resistance levels - 0.73, 0.7319 (June 14 high), 0.7342 (78..6% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Kiwi-buoyed-on-RBNZs-upbeat-economic-assessment-NZD-USD-spikes-but-pauses-at-stiff-resistance-at-07270-769446) was not triggered as the pair failed to break below 0.72 levels.
Recommendation: Good to go long around 0.7270/80, SL: 0.7240, TP: 0.73/ 0.7320/ 0.7340
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 85.2709 (Slightly bullish), while Hourly USD Spot Index was at -109.918 (Bearish) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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