FxWirePro: NZD/USD breaks major resistance, set to extend gains, good to go long on dips

NZD/USD chart - Trading View 

NZD/USD extends gains, spikes higher to hit 8-day high at 0.6722, bias bullish.

Antipodeans cheer upbeat China data released over the weekend.

China's Q2 GDP came inline with expectations at 6.2%. Retail sales was up +9.8%, beating expectations at +8.3% and industrial output was up +6.3% y/y also more than +5.2% expected.

Technical studies are bullish. RSI is well above 50 and shows strength in the uptrend.

Momentum with the bulls. Stochastics RSI is showing a rollover from oversold levels.

The pair has broken strong resistance at 200-DMA, daily cloud and major trendline, raising scope for further gains.

Next bull target lies at 61.8% Fib at 0.6764. Failure to close above 200-DMA could see minor weakness.

Support levels - 0.6711 (200-DMA), 0.6663 (5-DMA), 0.6656 (38.2% Fib)

Resistance levels - 0.6753 (Upper BB), 0.6782 (Apr 15 high), 0.68

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.