- NZD/USD is extending gains for 2nd successive session, intraday bias higher.
- The pair has closed above 20-DMA on Friday's trade and is on track to test psychological 0.6950 level.
- Bullish divergence from price action seen on RSI and Stochs which keeps downside cushioned.
- Focus on release of the Fed meeting minutes on Wednesday and NZ annual budget on Thursday for further impetus.
- We see the pair is trading in a potential 'Bearish Cypher Pattern', completion of which could reinforce downside.
Support levels - 0.6919 (5-DMA), 0.69 (20-DMA), 0.6817 (May 11 low)
Resistance levels - 0.6950 (23.6% Fibo 0.7375 to 0.6817 fall & psychological level), 0.6962 (50-DMA), 0.70
Recommendation: Good to go long on break above 0.6950, SL: 0.69, TP: 0.70/ 0.7030/ 0.7050
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -23.4643 (Neutral), while Hourly USD Spot Index was at -103.26 (Bearish) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
