FxWirePro: NZD/USD comatose above 5-DMA, US dollar weakness could favor upside

NZD/USD chart - Trading View 

NZD/USD was trading largely rangebound with session high at 0.7208 and low at 0.7181.

The pair has ignored downbeat China Caxin PMI data and remains mildly bid as U.S. dollar weakness supports.

China’s Caixin Manufacturing PMI eased below 54.9 expected and prior to 53.00 in December.

Trading sentiment remains sour amid fears of the resurgence of coronavirus (COVID-19) cases globally and fresh US-China tussle.

Technical Analysis:

- Price action is above cloud and major moving averages

- Analysis of GMMA indicator shows major and minor trend are strongly bullish

- ADX and MACD support upside in the pair

- Overbought oscillators and 'Shooting Star' on daily charts may cause minor pullbacks

- Volatility is high and rising and combined with bullish momentum could drive prices higher

Support levels - 0.7163 (5-DMA), 0.7111 (78.6% Fib), 0.71 (20-DMA)

Resistance levels - 0.7270 (Upper W BB), 0.73 (Psychological mark), 0.7320 (88.6% Fib)

Summary: NZD/USD trades with a strong bullish bias. Weakness in the greenback likely to aid upside. Scope for test of 88.6% Fib at 0.7320 in the week. Close below 5-DMA could see minor weakness.