FxWirePro: NZD/USD extending gains for 3rd successive session, eyes 20-DMA at 0.6995

• NZD/USD buoyed by US dollar weakness across the board, extends gains for 3rd straight session.
   
• Kiwi is extending stellar quarterly NZ employment report, which showed unemployment rate dropping to 4.6% and the number of employed people rising 2.2% q/q.
   
• Big beat on the Chinese services PMI data for October also lends support to the antipodeans.
   
• China’s Caixin October Services PMI came in at 51.2 vs 50.6 last and 50.8 expectations.
   
• Technical studies are biased higher, we see rollover of RSI and Stochs from oversold levels and MACD is on verge of bullish crossover on signal line.
   
• We see scope for test of 20-DMA at 0.6995, further upside only on break above.
   
• Strong support seen at 0.6818 (trendline), weakness likely on break below.

Support levels - 0.6889 (5-DMA), 0.6818 (trendline), 0.68

Resistance levels - 0.6968 (May 3rd high), 0.6995 (20-DMA), 0.7038 (38.2% Fib of 0.61968 to 0.7558 rally)

Recommendation: Good to go long on dips around 0.69, SL: 0.6815, TP: 0.6960/ 0.70/ 0.7040

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 148.699 (Bullish), while Hourly USD Spot Index was at -24.5469 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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