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FxWirePro: NZD/USD breaks above 200-DMA, bias higher, good to go long on dips

  • Upbeat China inflation data fails to impress the kiwi, NZD/USD trades a narrow range.
     
  • China's producer price index jumped 6.9% year-on-year in September, beating the estimates at 6.6%.
     
  • NZD/USD remains undermined by a broad based US dollar recovery and downbeat NZ Performance of Services Index.
     
  • Markets also remain wary ahead of the NZ election outcome due on cards this week.
     
  • The major broke above 200-DMA at 0.7160 on Friday's trade, Technical bias remains higher.
     
  • Upside likely capped at 20-DMA currently at 0.7191, further gains likely on break above.
     
  • Focus now on NZ quarterly CPI data due Tuesday along with US Empire State Manufacturing Index and Fed Budget balance for further impetus.

Support levels - 0.7160(200-DMA), 0.7125 (5-DMA), 0.71 (61.8% Fib retrace of 0.68171 to 0.7558 rally), 0.7055 (Oct 10 low)

Resistance levels - 0.7191 (20-DMA), 0.72, 0.7275 (38.2% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-bounces-off-major-trendline-support-eyes-200-DMA-at-07158-stay-long-947053) has almost hit all targets.

Recommendation: Watch out for break above 20-DMA to go long, SL: 0.7160, TP: 0.7240/ 0.7275/ 0.73

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

 

By Anupama Grandhi
  • Market Data
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