FxWirePro: NZD/USD extends recovery from multi-month lows, break of 5-DMA seen, good to buy dips

• Kiwi remains supported amidst broadly weaker US dollar along with tumbling UST yields.
   
• NZD/USD in recovery mode from multi-month lows, breaks above 5-DMA which was capping upside.
   
• Bullish RSI divergence on daily charts supports upside.
   
• Stochs still remain at oversold levels, rollover from o/s would provide further confirmation.
   
• Pair currently hovering around 50% Fib at 0.6916. We see scope for test of 20-DMA at 0.7034.
   
• Bullish invalidation below 0.6855 (major trendline support).
   
• Support levels - 0.6862 (Dec 23 low), 0.6855 (trendline support), 0.68 (June 3 low), 0.6770 (Apr 8 low)
   
• Resistance levels - 0.6891 (5-DMA), 0.6916 (50% Fib of 0.63470 to 0.74854 rally), 0.6947 (Dec 12 high), 0.70, 0.7042 (20-DMA)
   

Recommendation: Good to go long on dips around 0.69, SL: 0.6850, TP: 0.6945/ 0.6990/ 0.70/ 0.7030
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FxWirePro's Hourly NZD Spot Index was at 133.737 (Highly bullish), while Hourly USD Spot Index was at -12.953 (Neutral) at 0525 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.