- NZD/USD has paused upside at 0.7395 levels, struggles to break above 78.6% Fibo.
- The pair is seeing some weakness after disappointing Chinese trade balance data.
- That said, a subdued US Dollar and weaker tone around the US Treasury bond yields keep downside limited.
- Bullish momentum is likely to see further upside in the pair. Break above (78.6% Fib) to see test of 0.7440 (major trendline).
- On the flipside, retrace below 5-DMA could see test of 21-EMA at 0.7297. Bearish resumption likely below 50-DMA.
- Focus now on US Prelim UoM Consumer Sentiment and JOLTS Job Openings data, for some short-term impetus.
Support levels - 0.7356 (5-DMA), 0.7297 (21-EMA), 0.7283 (50-DMA), 0.7261 (61.8% Fib)
Resistance levels - 0.7391 (78.6% Fib), 0.74, 0.7440 (major trendline)
Recommendation: Watch out for break above 78.6% Fib to go long. Target 0.7440.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 18.7771 (Neutral), while Hourly USD Spot Index was at 22.6546 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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