- Strong New Zealand jobs data boosted the Kiwi earlier on the day, NZD/USD hit highs of 0.6968.
- Also, NZ dairy prices have risen to their highest level this year in the global dairy auction overnight, providing further support to the Kiwi.
- But the major failed to hold gains above 20-DMA, has slipped lower to currently trade at 0.6934 levels.
- Bounce off major trendline support at 0.6850 and bullishly aligned technical indicators support upside.
- Stochs are showing a bullish rollover from oversold levels and RSI has formed a bullish divergence.
Support levels: 0.6904 (5-DMA), 0.6850 (trendline), 0.6806 (April 27 low)
Resistance levels: 0.6963 (20-DMA), 0.70 (trendline), 0.7061 (100-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-holds-above-5-DMA-bullish-RSI-divergence-raises-scope-for-further-gains-673767) has it TP1.
Recommendation: We still see scope for upside in the pair. Recommend booking partial profits at highs. Raise trailing stop to 0.69. Hold for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 69.7225 (Slightly Bullish), while Hourly USD Spot Index was at -29.463 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
