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  |   Technicals

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FxWirePro: NZD/USD closes bearish gap but struggles at 20-DMA, intraday bias higher

  • NZD/USD holds major trendline support at 0.7250, intraday bias higher.
     
  • Commodity outperformance could extend into this week, keeping the NZD supported.
     
  • Also markets have priced in OCR on hold at 2.0% at Thursday’s RBNZ meet, with a signal of a rate cut in November. 
     
  • Any watering down of this explicit easing signal could likely cause a sharp rise in the NZD.
     
  • 21 Sep FOMC announcement is another key risk event. Rates mostly on hold, but the statement should have a slight hawkish twist.
     
  • Techs as of now do not have a clear directional bias, but some upside seen on intraday charts.
     
  • The major finds stiff resistance at 0.7315 (trendline) on hourly charts, break above could target 0.7330 and then 0.7365 levels.

Recommendation: Good to go long on break above 0.7315, SL: 0.7250, TP: 0.7365/ 0.7380/ 0.74
 

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