- NZD/USD extends break above 20-DMA, trades 0.20% higher on the day at 0.7422.
- Broad-based US dollar weakness propelling the pair higher, scope for further upside.
- Technical studies are bullish, RSI and Stochs sharply higher. MACD is showing a bullish crossover on signal line.
- We see +ve DMI dominance which supports further upside in the pair.
- 0.7435 is major resistance for the pair. It is double top and we see further bullishness on break above.
- 5-DMA at 0.7346 is immediate support, break below could see test of 20-DMA at 0.7323. Violation at 20-DMA invalidates bullish bias.
Support levels - 0.7346 (5-DMA), 0.7323 (20-DMA), 0.7281 (23.6% Fib)
Resistance levels - 0.7435 (double top), 0.75, 0.7558 (July 27 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-20-DMA-at-07307-breakout-to-see-further-upside-1149550) is approaching final targets.
Recommendation: Book partial profits at highs. Trail stop loss to 0.7340. Watch for break above 0.7435 for further upside.
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