- Kiwi remains bid on upbeat China data dump. China's GDP growth, industrial growth, fixed asset investment and retail sales, all surpassed consensus estimates.
- NZD/USD has managed to break 20-DMA resistance at 0.6999 and is holding above the 0.70 handle.
- Broad-based weakness seen in the greenback amid risk-off due to tensions in the Korean peninsula support gains.
- Dismal US CPI reading along with lower-than-expected US retail sales last Friday to keep upside supported.
- Technically, the pair has shown a decisive breakout above major trendline resistance at 0.6960.
- Stochs and RSI are biased higher, scope for test of 0.7075 (38.2% Fib retrace of 0.7375 to 0.6890 fall).
Support levels - 0.70 (20-DMA), 0.6989 (5-DMA), 0.6960 (trendline), 0.6920 (April 10 lows)
Resistance levels - 0.7062 (50-DMA), 0.7075 38.2% Fib), 0.7090 (March 21 high), 0.71, 0.7141 (200-DMA)
TIME TREND INDEX OB/OS INDEX
1H Slighlty bearish Neutral
4H Neutral Neutral
1D Bullish Neutral
1W Neutral Neutral
Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-20-DMA-caps-upside-in-NZD-USD-good-to-go-long-on-break-above-644106).
Recommendation: Bias higher, stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 21.5557 (Neutral), while Hourly USD Spot Index was at -122.981 (Bearish) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
