FxWirePro: NZD/USD capped at 20-DMA (0.6884), good to go long on break above

• NZD/USD struggles to extend previous session's gains, trades range bound.
   
• Weaker-than-expected New Zealand retail sales data for the third-quarter dents the kiwi.
   
• Data released earlier today showed New Zealand retail sales volumes rose 0.2 percent in the three months ended September 30, following a 2 percent rise in the June quarter.
   
• The value of retail sales rose 0.1 percent, compared to the 1.6 percent increase in the previous quarter.
   
• Also, markets skeptical that with RBNZ's new Gov, the central bank could see a shift in its policy outlook, potentially moving back towards a dovish bias.
   
• On the otherside, USD beaten down on the dovish FOMC minutes and disappointing data which is likely to keep upside bias in the pair.
   
• NZD/USD capped below 20-DMA at 0.6884, breakout above could see further upside.
   
• Technical studies are turning and Bullish divergence on RSI and Stochs raises scope for upside.
   
• On the flipside, we see weakness only on break below major trendline support at 0.6818.

Support levels - 0.6842 (5-DMA), 0.6809 (61.8% Fib retrace of 0.6347 to 0.7558 rally), 0.6780 (Nov 17 low)

Resistance levels - 0.6884 (20-DMA), 0.6952 (50% Fib), 0.6980 (Nov 9 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-rejected-at-20-DMA-06939-good-to-short-rallies-1003663) has achieved TP1&2.

Recommendation: Good to go long on break above 20-DMA at 0.6884, SL: 0.6840, TP: 0.69/ 0.6950/ 0.6980.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 127.323 (Bearish), while Hourly USD Spot Index was at -86.0466 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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