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FxWirePro: NZD/USD struggles at 20-day MA, break above likely to target 0.7370

NZD/USD bounced off 50-DMA on Monday's trade, Doji formation seen on daily candle. Broad dollar strength across the board on Tuesday after a relatively subdued performance overnight. NZD/USD extends gains but struggling …

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FxWirePro: NZD/USD struggles at 20-day MA, break above likely to target 0.7370
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  • NZD/USD bounced off 50-DMA on Monday's trade, Doji formation seen on daily candle. 
     
  • Broad dollar strength across the board on Tuesday after a relatively subdued performance overnight.
     
  • NZD/USD extends gains but struggling to extend above 20-DMA, which is stiff resistance.
     
  • Technical indicators are slightly bullish, RSI and Stochs are biased higher, the pair is trading above major moving averages.
     
  • The pair has broken major trendline resistance at 0.7275 and price action is above daily cloud.
     
  • Break above 20-DMA could target 0.7370 and then 0.7380 levels. We see weakness only below 50-DMA at 0.7257.
     
  • Speech from the RBNZ's governor Wheeler ahead of GDT dairy auction will be in focus.
     
  • The main event scheduled for the week remains with the nonfarm payrolls on Friday.
     
  • Major support levels - 0.7257 (50-DMA), 0.7230 (cloud top), 0.7220 (Sept 26 low)
     
  • Major resistance levels - 0.7304 (20-DMA), 0.7370 (Sept 22 high), 0.7380 (Aug 26 high)
    ​

Recommendation: Good to go long on breakout above 20-DMA, SL: 0.7257, TP: 0.7370/ 0.7380/ 0.74
 

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