FxWirePro: NZD/USD pauses upside at 0.70 handle, overbought conditions could cause some pullbacks

NZD/USD chart - Trading View 

NZD/USD was trading largely unchanged at 0.70 handle with session high at 0.7014 and low at 0.6996.

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr urged the government to consider changes in the tax policy, in a bid to stem the rise in house prices.

Strong New Zealand trade numbers for October paint a picture of an improving domestic economy.

Further, broad based US dollar weakness after disappointing US jobs data and dovish Fed minutes overnight likely to keep downside under check.

NZD/USD trades with a bullish technical setup. Price action has broken above 200W MA and major trendline resistance.

Overbought oscillators could cause minor pullbacks, but downside is likely to be limited. Bulls likely to target 78.6% Fib at 0.7111. 

On the flipside, 5-DMA is immediate support at 0.6966. Next major supports align at 0.6856 (21-EMA) ahead of 0.6745 (55-EMA). Bullish invalidation only on retrace below 200W MA.