FxWirePro: NZD/USD holds 5-DMA support, resumes upside after brief pause on Monday's trade

NZD/USD chart - Trading View 

NZD/USD was trading 0.11% higher on the day at 0.7271 at around 05:50 GMT, upside bias intact.

The pair has resumed upside after a brief pause on Monday's trade. Price action has held support at 5-DMA.

Earlier in the day, New Zealand’s Electronic Card Retail Sales which account for 68% of core Retail Sales, jumped 108.7% YoY in April versus 5.1% prior. 

Kiwi bulls failed to capitalize on strong data and remained subdued amid souring risk catalysts, keeping the major rangebound.

Risk-related headlines to drive price action. Focus also on Wednesday’s US CPI data (expected 3.6%, prior 2.6% YoY) for impetus.

Major Support Levels: 

S1: 0.7251 (5-DMA)

S2: 0.7202 (20-DMA)

S3: 0.7159 (55-EMA)

Major Resistance Levels: 

R1: 0.7290 (Upper BB)

R2: 0.73 (Psychological mark)

R3: 0.7320 (88.6% Fib)

Summary: Technical bias for the pair is still bullish. GMMA indicator shows major and minor trend are bullish. Price action is above cloud and major moving averages. 

Upside bias intact as long as pair holds above daily cloud. Scope for test of 88.6% Fib at 0.7320 ahead of yearly highs at 0.7464.