FxWirePro: NZD/USD upside capped at 55-EMA (0.7063), break above to see further gains

• NZD/USD upside capped at 55-EMA (0.7063), break above likely to test 50-DMA at 0.7086.
   
• The pair has edges lower from 5-week highs at 0.7060 hit on Wednesday and is currently trading at 0.7039 levels.
   
• Kiwi bulls hold above 200-month moving average at 0.6994, scope for further upside till 200-DMA.
   
• Momentum studies are bullish and a bullish divergence on RSI and Stochs adds to further upside bias.
   
• The US Dollar extends its slide. Worries about global trade weigh on the greenback.
   
• Break above 50-DMA to see further upside. While on the flipside, we see weakness on break below 21-EMA.

Support levels - 0.7022 (5-DMA), 0.6989 (23.6% Fib), 0.6882 (May 30 low)

Resistance levels - 0.7075 (38.2% Fib), 0.7086 (50-DMA), 0.71, 0.7123 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1334592) has hit TP1.

Recommendation: Bias higher. Hold for further upside.

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