FxWirePro: NZD/USD finds strong support at 20-DMA (0.7241), weakness only on break below

• The kiwi spiked higher on Tuesday after latest poll survey showed possible victory of ruling National Party.
  
• NZD/USD spiked past 0.73 handle to hit highs of 0.7320, bit failed to hold gains above 50-DMA at 0.7315.
  
• The major is trading a narrow range on the day, hovers below 0.73 handle.
  
• Downside finds strong support at 20-DMA at 0.7241, we see weakness only on close below.
  
• Upside is struggling to break above 50-DMA at 0.7315, we see further upside only on break above.
  
• Technical studies are bullish, RSI and Stochs biased higher and we see bullish divergence on daily charts.
  
• US inflation data (due Thursday) will be in focus for fresh clues over the timing of next Fed rate hike move and eventually further direction in the pair.

Support levels - 0.7275 (38.2% Fib retrace of 0.6817 to 0.7558 rally), 0.7263 (5-DMA), 0.7241 (20-DMA)

Resistance levels - 0.73373 (Double top), 0.7391 (weekly 200-SMA), 0.7416 (Aug 7 high)

Recommendation: Good to go long on decisive break above 50-DMA, SL: 0.72, TP: 0.7340/ 0.7390/ 0.7415

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 68.6554 (Neutral), while Hourly USD Spot Index was at 60.7589 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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