NZD/USD finds stiff resistance at 0.7059, breakout to propel the pair higher
- NZD/USD extends grind higher, holds above 5-DMA which is immediate support at 0.7028.
- The pair has hit fresh 2-month highs at 0.7052, intraday bias remains higher.
- Technical studies on weekly charts are bullish, Stochs have rolled over from oversold levels and RSI is biased higher.
- MACD is on verge of a bullish crossover on signal line which if completed adds to bullish bias.
- The pair finds stiff resistance at 0.7059 which is converged 100 and 20 week moving averages.
- Breakout at 0.7059 will see the pair propelled higher. Scope then for test of 0.7075 and then 0.7169 levels.
- On the flipside, weakness likely on break below 5-DMA, test of 20-DMA at 0.6941 then likely.
Support levels – 0.7027 (5-DMA), 0.6963 (23.6% Fib retrace of 0.7558 to 0.6780 fall), 0.6941 (20-DMA)
Resistance levels – 0.7059 (converged 100 and 20 W SMA), 0.7072 (100-DMA), 0.71
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-extends-grind-higher-along-5-DMA-eyes-100-DMA-at-07075-1073404) is progressing well.
Recommendation: Stay long for targets.
FxWirePro Currency Strength Index: FxWirePro’s Hourly NZD Spot Index was at 24.7953 (Neutral), while Hourly USD Spot Index was at -117.926 (Bearish) at 0500 GMT.
Source: FXWire Technicals