FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

NZD/USD was trading 0.79% higher on the day at 0.5886 at around 09:40 GMT.

Market’s cautiously optimistic ahead of the key Federal Open Market Committee (FOMC) meeting.

Hopes for a less hawkish Fed keep the USD bulls on the defensive and support gains in the pair.

New Zealand employment report showed that the jobless rate held steady near the record low level of 3.3% during the third quarter. 

Further, the number of employed people rose more than expected, by 1.3% during the reported period against expectations of a 0.5% increase. 

Upbeat employment data, along with the emergence of fresh selling around the US dollar, is seen acting as a tailwind for the major.

The pair is grinding higher for the third consecutive session, scope for further upside. Price action has broken into the daily cloud, Chikou span is biased higher.

Momentum is bullish. Stochs and RSI are sharply higher, RSI is well above the 50 mark. GMMA indicator shows major trend is neutral, while minor trend is turning bullish.

Support levels - 0.5868 (55-EMA), 0.5835 (5-DMA), 0.5765 (21-EMA)

Resistance levels - 0.5901 (Upper BB), 0.6017 (21-week EMA), 0.6049 (110-EMA)

Summary: NZD/USD was trading with a bullish bias. Price action has broken into daily cloud and is above 55-EMA, raising scope for further upside. Next major resistance lies at 21-week EMA at 0.6017.