- NZD/USD is extending range trade at 21-EMA at 0.6850, we see further upside only on break above.
- Technical analysis still remains bullish. We see no major signs of reversal.
- The pair has bounced off major trendline support at 0.6685 and breakout at 21-EMA will see test of 50-DMA at 0.6921.
- Momentum with the bulls. Stochs show bullish rollover from oversold levels and RSI is biased higher.
- We also see bullish divergence on RSI and Stochs which raises scope for upside. MACD is on verge of bullish crossover on signal line.
- Break below 5-DMA support at 0.6811 could see minor downside.
Support levels - 0.6811 (5-DMA), 0.68, 0.6780 (Nov 17 low), 0.67, 0.6665 (trendline)
Resistance levels - 0.6850 (21-EMA), 0.6865 (23.65 Fib), 0.69, 0.6921 (50-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1398523) has almost hit all targets.
Recommendation: Watchout for break above 21-EMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 62.2501 (Neutral), while Hourly USD Spot Index was at 51.309 (Neutral) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
