FxWirePro: NZD/USD consolidates channel break, trades rangebound ahead of US NFP data

NZD/USD chart on Trading View used for analysis

• NZD/USD is trading in a narrow range, consolidates channel breakout.
   
• Markets cautious ahead of the US non-farm payrolls and wage growth release.
   
• The RBNZ meeting next Thursday will be watched for clues on whether the next move in the OCR could be up or down.
   
• At the upcoming meeting the RBNZ is widely expected to leave the OCR unchanged at 1.75%.
   
• Analysts see the OCR on hold for the foreseeable future with risks tilted towards the next move being a cut.
   
• Technically the pair has shown a bullish breakout above channel top raising scope for further gains.
   
• Cloud top is immediate resistance at 0.6676, decisive break above eyes 38.2% Fib at 0.6811.
   
• On the flipside, 55-EMA is strong support at 0.6897. Retrace into channel could see resumption of weakness.

Support levels - 0.6597 (55-EMA), 0.6580 (channel top and 5-DMA)

Resistance levels - 0.6676 (cloud top), 0.6695 (110-EMA), 0.6811 (38.2% Fib)

Recommendation: Stay long on cloud breakout, place stops at 0.66, target 0.6810

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.