NZD/USD resumes upside after brief consolidation, eyes 0.7435, good to long dips
- NZD/USD pauses at minor trendline resistance at 0.7393, intraday bias higher.
- The pair was extending consolidation after hitting 4-month market high of 0.7436 last week.
- Price action has now resumed upside as markets brush aside Chinese PMI disappointment.
- Further, the pair derives support after S&P affirmed New Zealand’s sovereign debt with a AA rating with a stable outlook.
- NZD/USD resumes upside after brief consolidation, bulls now eye 0.7435 which is tough barrier.
- Breakout there will see 0.7469 (88.6% Fib) ahead of 0.7558 (2017 high).
- On the flipside, we see weakness on break below 20-DMA support at 0.7276.
Support levels – 0.7344 (5-DMA), 0.7276 (20-DMA), 0.7261 (61.8% Fib retrace of 0.7558 to 0.6780 fall)
Resistance levels – 0.7391 (78.6% Fibo), 0.7393 (minor trendline), 0.7436 (Jan 24 high)
Recommendation: Good to go long on dips around 0.7350, SL: 0.7275, TP: 0.7390/ 0.74/ 0.7435
FxWirePro Currency Strength Index: FxWirePro’s Hourly NZD Spot Index was at 141.308 (Bullish), while Hourly USD Spot Index was at -174.133 (Bearish) at 0640 GMT.
Source: FXWire Technicals