- Risk-off in the early Asia as the Japanese land sale scandal comes back into focus keeping the antipodeans subdued.
- NZD/USD struggles to extend gains above 0.73 handle, breakout to see further upside.
- With little major data to drive, the kiwi largely remains at the mercy of market sentiment as the main driver.
- Technical bias remains bullish. RSI is above 50 and Stochs are biased higher.
- The pair failed to extend weakness below 200-DMA and now finds strong resistance at 50-DMA at 0.7293.
- Break above 50-DMA could see test of 0.7435 (major trendline resistance). Break below 20-DMA could see minor weakness.
Support levels - 0.7258 (20-DMA), 0.7252 (5-DMA), 0.72, 0.7184 (200-DMA)
Resistance levels - 0.7281 (23.6% Fib), 0.7293 (50-DMA), 0.7354 (Mar 13, 14 high)
Recommendation: Good to go long on breakout above 0.73 handle, SL 0.7225, TP: 0.7354/ 0.74/ 0.7435
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 82.4312 (Bullish), while Hourly USD Spot Index was at -109.259 (Bearish) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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