- NZD/USD extends higher for a 4th straight session, supported by broad-based US dollar weakness.
- The pair is trading 0.37% higher at the time of writing, extends above 5-DMA, bias higher.
- Technical analysis suggest a bullish bias. The pair has bounced off major trendline support at 0.6685.
- Price has broken above 5-DMA at 0.6765 and holds above 1H 110-EMA and hourly cloud.
- Stochs show bullish rollover from oversold levels and we see bullish divergence on RSI and Stochs which raises scope for upside.
- The pair has broken above 0.68 handle and is on track to test 23.6% Fib at 0.6865. Break above to see further upside.
- On the flipside, we see major trendline support at 0.6675. Bullish invalidation likely on break below.
Support levels - 0.6765 (5-DMA), 0.67, 0.6675 (trendline)
Resistance levels - 0.6850 (21-EMA), 0.6864 (23.6% Fib), 0.69
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1398523) has hit TP1.
Recommendation: Book partial profits. Hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 85.4381 (Bullish), while Hourly USD Spot Index was at -152.485 (Bearish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
