- NZD/USD spikes past 20-DMA to hit 3-week highs at 0.73373, bias higher.
- Broad based sell-off in the greenback post US jobless claims reports which showed a sharp increase to the highest since 2015 supporting upside.
- Also, prevalent positive trading sentiment around crude oil prices provided an additional boost to the commodity-linked currency.
- The pair has bounced off 200-DMA, broken above 20-DMA and price action has pierced into daily cloud.
- RSI and Stochs on daily charts are sharply higher and we see bullish divergence which adds to upside bias.
- However, weekly charts are heavily bearish. Only decisive break above weekly 200-SMA (0.9397) will see extension of upside.
Support levels - 0.73, 0.7273 (cloud base), 0.7267 (weekly 5-SMA), 0.7244 (20-DMA)
Resistance levels - 0.73373 (Aug 21 high), 0.7397 (weekly 200-SMA), 0.7416 (Aug 7 high)
Recommendation: Good to go long on dips around 0.73, SL: 0.7240, TP: 0.7335/ 0.7395/ 0.7415
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 81.8701 (Bullish), while Hourly USD Spot Index was at -152.588 (Bearish) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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