- NZD/USD fails to hold break above 20-DMA, edges lower from session highs at 0.6894 to currently trade at 0.6875 levels.
- Downbeat New Zealand Q3 retail sales data continues to weigh on the bird.
- Technical studies are turning and Bullish divergence on RSI and Stochs raises scope for upside.
- Breakout above 20-DMA at 0.6885 could see further upside, test of 50-DMA at 0.7031 then likely.
- On the flipside, we see weakness only on break below major trendline support at 0.6818.
Support levels - 0.6857 (5-DMA), 0.6809 (61.8% Fib retrace of 0.6347 to 0.7558 rally), 0.6780 (Nov 17 low)
Resistance levels - 0.6885 (20-DMA), 0.6952 (50% Fib), 0.6980 (Nov 9 high)
Recommendation: Good to go long on break above 20-DMA at 0.6885, SL: 0.6840, TP: 0.69/ 0.6950/ 0.6980.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -23.5697 (Neutral), while Hourly USD Spot Index was at -88.4979 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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