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FxWirePro: NZD/USD pares GDP-led losses, weakness only on break below 20-DMA at 0.7295

  • NZD/USD pares GDP-led losses, edges higher from session lows at 0.7303.
     
  • The Kiwi has been struggling to get support on the back of New Zealand GDP miss.
     
  • New Zealand's GDP y/y stood at 2.9%, below the expected 3.1%, but still above the 2.7% posted for the previous year.
     
  • Overall market sentiment will be the continued driver underpinning action in the NZD/USD.
     
  • Technical bias is still higher. RSI is above 50 levels and Stochs are biased higher. We see a bullish crossover of MACD line on signal line.
     
  • The pair is holding above daily cloud with scope for test of 0.7435 (trendline) ahead of 0.7558 (July 27 high).
     
  • 20-DMA at 0.7295 is strong support on the downside and we see weakness only on break below.

Support levels - 0.7310 (5-DMA), 0.7295 (20-DMA), 0.7281 (23.6% Fib)

Resistance levels - 0.7354 (March 13, 14 high), 0.74, 0.7435 (trendline)

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