FxWirePro: NZD/USD struggles at 78.6% Fib, upside only on break above

• NZD/USD struggles to extend beyond 78.6% Fib retrace of 0.74854 to 0.68176 fall at 0.7342.
   
• We see further upside only on break above, scope then for test of weekly 200-SMA at 0.7442.
   
• Kiwi bulls remain unimpressed by a big beat in the Chinese manufacturing PMI data.
   
• China Caixin Manufacturing PMI for June came in at 50.4, beating forecasts at 49.5.
   
• Bearish divergences on RSI and Stochs are keeping scope for downside correction in the major.
   
• Close below 5-DMA at 0.7304 likely to see test of 20-DMA at 0.7249. Violation there could see further downside.
   
• Later in the day, US ISM manufacturing index will be in focus for further impetus.
   

Support levels - 0.7304 (5-DMA), 0.7275 (trendline), 0.7249 (20-DMA), 0.72

Resistance levels - 0.7342 (78.6% Fib retrace of 0.74854 to 0.68176 fall), 0.7375 (Feb 7 high), 0.74 (88.6% Fib), 0.7440 (weekly 200-SMA)

Recommendation: Good to go long on decisive break above 78.6% Fib at 0.7342, SL: 0.73, TP: 0.74/ 0.7440

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