FxWirePro: NZD/USD extends rally on the 0.67 handle, break above 0.6785 resistance to test 0.6835 levels
Kiwi rallied against the US Dollar buoyed by a more dovish than anticipated FOMC statement and upbeat NZ GDP data. New Zealand Q4 GDP arrived at +0.9% q/q vs the +0.6% expected vs. 0.9% prior, and y/y actual at 2.3% for …
Kiwi rallied against the US Dollar buoyed by a more dovish than anticipated FOMC statement and upbeat NZ GDP data.
New Zealand Q4 GDP arrived at +0.9% q/q vs the +0.6% expected vs. 0.9% prior, and y/y actual at 2.3% for the same quarter vs 2.0% expected and 2.3% prior.
NZD/USD rallied from 0.6585 lows post FOMC, took out the 0.67 handle and hit highs of 0.6740 on Wednesday.
The pair is extending gains today after the GDP data, hit session high of 0.6780 and has since pared some gains to currently trade around 0.6767 levels.
We see strong trendline resistance at 0.6785 levels, break above could see test of 0.6835.
Technicals are supportive for further gains, RSI and Stochs are biased higher, price action is well above the daily cloud and 200-DMA.
Immediate support is seen at 0.6717 (10-DMA), weakness only on breaks below 0.6683 (4H 5 DMA).
Recommendation: Good to buy dips around 0.6760, SL: 0.6720, TP: 0.68/0.6850/0.6865
