- NZD/USD hits fresh 19-week highs at 0.7389, is extending upside for 7th straight week.
- The major has shown decisive breakout at 200W SMA which keeps scope for further upside.
- Price action currently hovers around 78.6% Fib retrace of 0.7558 to 0.6780 fall at 0.7391.
- Breakout at 78.6% Fib is likely to accentuate gains higher. Scope then for test of 0.7434 (Sept 20 high) ahead of channel top at 0.76 levels.
- Technical indicators support further upside. Momentum indicators are highly bullish.
- Retrace and close below 200W SMA at 0.7273 invalidates bullish bias.
Support levels - 0.73 (5-DMA), 0.7272 (200W SMA), 0.7261 (61.8% Fib retrace of 0.7558 to 0.6780 fall), 0.72
Resistance levels - 0.7355 (session high), 0.7391 (78.6% Fib), 0.74, 0.7434 (Sept 20 high)
Call update: Our previous call has hit all targets.
Recommendation: Good to go long on break above 0.7391, SL: 0.73, TP: 0.7434/ 0.75/ 0.7560
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 124.883 (Bullish), while Hourly USD Spot Index was at -180.544 (Bearish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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