- NZD/USD retraced brief dip below 0.72 handle and has edged higher to currently trade at 0.7215.
- Kiwi remains buoyed on the back of slightly upbeat Chinese CPI and PPI figures.
- China's May Consumer Price Index came at -0.1% m/m vs -0.2% expected, and was 1.5 % y/y vs 1.5% expected.
- Meanwhile, China’s Producer Price Index for May arrived at 5.5% y/y vs 5.7% expected and 1.2% last.
- 5-DMA at 0.7189 is strong support for the pair. Break below could see minor weakness.
- The pair is trading with a major bullish bias, RSI strong at 71 and MACD supporting uptrend.
- Stochs are in highly overbought territory which warrants some caution. Also some bearish divergence seen on intraday charts.
Support levels - 0.7189 (5-DMA), 0.7151 (50% Fibo 0.74854 to 0.68176 fall), 0.7103 (200-DMA)
Resistance levels - 0.7230 (61.8% Fib), 0.7275 (channel top), 0.73
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-rejected-at-highs-break-below-200-DMA-at-07104-could-see-weakness-741384) has almost hit all targets.
Recommendation: Book full profits at highs.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 77.9533 (Neutral), while Hourly USD Spot Index was at 46.8721 (Neutral) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
