- NZD/USD has shown a decisive breakout above 50-DMA at 0.6965, bias higher.
- The pair is on track to test 100-DMA at 0.7054 and violation there could see test of 200-DMA at 0.7113.
- Bullish divergence from price action seen on RSI and Stochs which keeps downside cushioned.
- Focus on release of the Fed meeting minutes on Wednesday and NZ annual budget on Thursday for further impetus.
- We see the pair is trading in a potential 'Bearish Cypher Pattern', completion of which could reinforce downside.
Support levels - 0.70, 0.6965 (50-DMA), 0.6958 (5-DMA), 0.6906 (20-DMA), 0.6817 (May 11 low)
Resistance levels - 0.7030 (38.2% Fib), 0.7054 (100-DMA), 0.7096 (50% Fib), 0.7113 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-extends-upside-for-2nd-consecutive-session-holds-above-20-DMA-bias-higher-714400) has hit TP1&2.
Recommendation: Book partial profits at highs. Raise trailing stop to 0.6965. Hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 75.0227 (Bullish), while Hourly USD Spot Index was at -88.5234 (Bearish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
