- NZD/USD edges higher from fresh 4-week lows below 0.72 handle, holds above 55-EMA (0.7175).
- The pair has retraced above 5-DMA and is currently trading at 0.7273, up 0.27% on the day.
- Upside now finds stiff resistance at 20-DMA at 0.7306, breakout could see further upside.
- Technical studies are still bearish, RSI and Stochs sharply lower. We see -ve DMI crossover and MACD supports downside.
- We see strong support at 0.7185 (converged 38.2% Fib and 55-EMA), break below will see further weakness.
- On the flipside, close above 5-DMA will see minor upside till 20-DMA at 0.73. Breakout at 20-DMA could negate bearish bias.
Support levels - 0.7264 (5-DMA), 0.7185 (converged 55-EMA & 38.2% Fib retrace of 0.6780 to 0.7435 rally), 0.7149 (200-DMA)
Resistance levels - 0.7281 (23.6% Fib), 0.7306 (20-DMA), 0.7350 (Feb 6 high)
Recommendation: Wait for clear directional bias.
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