- NZD/USD spiked to hit fresh 2-year highs at 0.7558, bias still higher.
- The FOMC decision which was less hawkish than expected, disappointed hawks, weighing on the USD.
- Further Kiwi buoyed on the back of strong Chinese industrial profits data and Fonterra’s revision to its farmgate milk prices
- China June Industrial profits climbed +19.1% y/y compared to +16.7% in the previous month.
- Also, the latest NZ trade balance data beat expectations, which also added to the upside in the Kiwi.
- The pair is extending gains after break above weekly 200-SMA last week. We do not see signs of reversal, scope for further continuation in trend.
Support levels - 0.7470 (5-DMA), 0.7428 (weekly 200-SMA), 0.7348 (20-DMA)
Resistance levels - 0.7558 (session high), 0.7613 (Feb 2015 high), 0.7697 (Mar 2015 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-triple-top-good-to-long-break-above-major-resistance-at-07431-814851) has hit TP1&2.
Recommendation: Bias higher. Book partial profits at highs. Raise trailing stop to 0.74. Stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 126.995 (Bullish), while Hourly USD Spot Index was at -20.2299 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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