- NZD/USD grinds higher after break above 5-DMA, but upside is struggling to break above 50-DMA.
- The pair is trading a narrow range, with a daily high of 0.7334 and low of 0.7318.
- Technical indicators are slightly bullish. Stochs have rolled from oversold levels.
- Election uncertainty could act as a cap on NZD strength over the next few weeks.
- Daily cloud offers strong support on the downside, we see weakness only on break below.
- Decisive break above 50-DMA currently at 0.7330 could see test of 20-DMA at 0.7374.
- On the flipside, break below 5-DMA at 0.7310 could see drag till 0.72 handle.
Support levels - 0.7310 (5-DMA), 0.7277 (cloud top), 0.7250 (trendline)
Resistance levels - 0.7330 (50-DMA), 0.7374 (20-DMA), 0.7383 (23.6% Fib of 0.6817 to 0.7558 rally)
Recommendation: Good to go long on decisive break above 50-DMA, SL: 0.73, TP: 0.7375/ 0.74/ 0.7430
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