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)
