- NZD/USD up 0.13% on the day, bias bullish, on track to test 0.72 handle.
- Mixed US jobs numbers on Friday failed to offer any respite to the USD bulls, sentiment around the greenback broadly undermined.
- The pair is extending grind higher after breakout at 200-DMA, but struggles at major trendline resistance at 0.7185.
- Technical indicators still bullish, we do not see any signs of reversal, scope for further upside.
- Breakout at 0.7185 to see test of 0.72 handle, ahead of 0.7261 (61.8% Fib retrace of 0.7558 to 0.6780 fall).
- On the flipside, retrace below 200-DMA at 0.7108 could see weakness in the pair.
- Focus now on China’s and US CPI data due this week for further impetus.
Support levels - 0.7137 (5-DMA), 0.7108 (200-DMA), 0.7058 (100-DMA)
Resistance levels - 0.7185 (Trendline), 0.72, 0.7261 (61.8% Fib), 0.7298 (Aug 29 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-200-DMA-at-07104-breakout-to-see-further-upside-1076181) is approaching final targets.
Recommendation: Watch out for break above 0.7185 for further upside.
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