FxWirePro: NZD/USD extends grind along 5-DMA, on track to test 21-EMA, stay long

Refer NZD/USD chart on Trading View

• NZD/USD is extending grind higher along 5-DMA, intraday bias higher.
   
• US dollar weakness across the board is supporting upside in the pair.
   
• Markets perceiving the possibility of the Fed slowing down the pace of policy tightening in response to criticism from the White House weighing on the dollar.
   
• The 10-year treasury yield fell more than five basis points to 2.82 percent yesterday, sending the USD lower across the board.  
   
• Technical indicators on intraday charts are turning slightly bullish. Stochs have rolled over from oversold levels and RSI is biased higher.
   
• Immediate resistance lies at 21-EMA at 0.6682. Further upside only on break above.
   
• Bullish divergence on RSI and Stochs keeps scope for upside. Break above 21-EMA could see test of 23.6% Fib at 0.6755.

Support levels - 0.6617 (5-DMA), 0.6544 (Aug 15 low)

Resistance levels - 0.6682 (21-EMA), 0.6755 (23.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1417819) has hit TP1.

Recommendation: Bias higher. Hold for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 74.4547 (Neutral), while Hourly JPY Spot Index was at -106.198 (Bearish) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.