FxWirePro: Strong resistance for NZD/USD in 0.6810-20 zone, breaks above could see further gains

NZD/USD edging higher as USD retreats in Asia, the pair broke strong trendline resistance at 0.6780, further gains likely on breaks above 0.6820.

• Broadly lower USD helping underwrite move, also expectations of another bounce in whole-milk powder at the Fonterra's dairy auction later today keeps NZD supported.
   
• The pair spiked above 0.68 handle to hit highs of 0.6810, and has then pared some gains to currently trade at 0.6795.
   
• Break above 0.6780 resistance technically opens doors to 0.6865 (23 Oct top) ahead of 0.69 mid-Oct high.
   
• Markets wary ahead on FOMC, a hike has already been discounted, market focus to shift quickly from the initial hike - which has been well flagged - to the subsequent path, a dovish statement could weigh heavily on USD.

 

Resistance Levels:
R1: 0.6813 (Daily High Oct 27)

R2: 0.6820 (Oct 22 high)

R3: 0.6865 (Daily High Oct 23)

Support Levels:

S1: 0.6716 (Dec 10 low)

S2: 0.67 (Psychological level)

S3: 0.6698 (10-Day MA)