FxWirePro: NZD/USD breaks above 61.8% Fib, eyes channel top at 0.7270

• NZD/USD extends grind higher, hits 31/2-month highs at 0.7240, bias higher.
   
• The pair has broken 61.8% Fib of 0.7485 to 0.6817 fall at 0.7230.
   
• Momentum bullish, but momentum indicators at overbought levels, so caution advised.
   
• We do not see any signs of reversal, next bull target is channel top at 0.7270.
   
• Violation at channel top will see acceleration in upside, 78.6% Fib at 0.7342 next likely target.
   
• Markets wary ahead of crucial US CPI and FOMC meeting, which could shape future direction in the pair.
   
• Markets have largely priced in a rate hike from the Fed, the statement will be key for driving market sentiment.

Support levels - 0.7215 (5-DMA), 0.7151 (50% Fib of 0.7485 to 0.6817 fall), 0.7100 (converged 20&200 DMA)

Resistance levels - 0.7246 (Feb 23 high), 0.73, 0.7342 (78.6% Fib)

Recommendation: Watch out for breakout above channel top to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 74.0458 (Bearish), while Hourly USD Spot Index was at -134.108 (Bearish) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.