- The greenback was dumped across the board on Thursday after the FOMC minutes.
- Kiwi remained resilient amid a lack of clarity around the NZ political environment.
- NZD/USD holds gains early in the Asian session, markets ignore downbeat ANZ consumer confidence numbers.
- The pair had bounced off major trendline support at 0.7055, and bulls now target 200-DMA at 0.7159.
- Rising 5-DMA at 0.7096 is now strong support on the downside, we see weakness on break below.
- Violation at major trendline support at 0.7055 could see resumption of downside.
Support levels - 0.7115(1H 200-SMA), 0.71 (61.8% Fib), 0.7096 (5-DMA), 0.70, 0.6976 (78.6% Fib retracement of 0.68176 to 0.75580 rally)
Resistance levels - 0.7159 (200-DMA), 0.7194 (20-DMA), 0.7275 (38.2% Fib)
Call update: We had recommended a long call on the pair (https://www.econotimes.com/FxWirePro-NZD-USD-bounces-off-major-trendline-support-eyes-200-DMA-at-07158-stay-long-947053).
Recommendation: Exit trade at highs. Watch out for break above 200-DMA to re-enter longs.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 183.153(Bullish), while Hourly USD Spot Index was at -146.424 (Bearish) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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