FxWirePro: NZD/USD finds stiff resistance at 0.66 handle, bullish divergence keeps scope for upside
NZD/USD chart - Trading View NZD/USD trades 0.27% lower at 0.6579 at 0535 GMT, bias lower. The pair has paused recovery, finds stiff resistance at 0.66 (major trendline resistance). We see bullish divergence on RSI and S…
NZD/USD trades 0.27% lower at 0.6579 at 0535 GMT, bias lower.
The pair has paused recovery, finds stiff resistance at 0.66 (major trendline resistance).
We see bullish divergence on RSI and Stochs on daily charts that keeps scope for upside.
However, risk aversion is likely dragging the Kiwi lower as Sino-US trade war shows little signs of de-escalation.
Also, New Zealand food inflation dropped in April. NZ food inflation increased an annual 1% in April. Month-on-month, however, food prices fell 0.1%, following a 0.5% rise in March.
Major trend in the pair is bearish. Next major bear target lies at 0.6541 (converged Lower BB and 78.6% Fib).
On the flipside, break above 0.66 could see test of 21-EMA at 0.6645. Break above 21-EMA targets 200-DMA at 0.6718.
Support levels - 0.6541 (converged Lower BB and 78.6% Fib), 0.65, 0.6486 (88.6% Fib)
