- New Zealand Treasury’s monthly economic report earlier today indicated the economy experienced reasonable growth over the March quarter.
- NZD/USD extending upside in a continuation of the January bullish channel and recovery from 2016 lows at 0.6347.
- The pair tested 2016 highs at 0.7054 and has edged slightly lower to currently trade at 0.7048 levels.
- Techs are pointing north, we see scope for test of channel top at 0.7085. Upside momentum strong with RSI at 62 and Stochs are also biased higher.
- 5-DMA has shown a bullish crossover on 10-DMA, the pair finds strong support at 0.6965 (5-DMA), weakness only on breaks below.
- Strong resistance is seen at 0.7086 which is channel top on daily charts and also the weekly cloud top.
- Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-on-track-to-test-channel-top-at-07085-good-to-buy-dips-202805) has hit TP 1&2.
Recommendation: Book partial profits, raise stops to 0.70, target 0.7085
