FxWirePro: NZD/USD extends rally on the 0.67 handle, break above 0.6785 resistance to test 0.6835 levels

Kiwi rallied against the US Dollar buoyed by a more dovish than anticipated FOMC statement and upbeat NZ GDP data.

• New Zealand Q4 GDP arrived at +0.9% q/q vs the +0.6% expected vs. 0.9% prior, and y/y actual at 2.3% for the same quarter vs 2.0% expected and 2.3% prior.
   
• NZD/USD rallied from 0.6585 lows post FOMC, took out the 0.67 handle and hit highs of 0.6740 on Wednesday.
   
• The pair is extending gains today after the GDP data, hit session high of 0.6780 and has since pared some gains to currently trade around 0.6767 levels.
   
• We see strong trendline resistance at 0.6785 levels, break above could see test of 0.6835.
   
• Technicals are supportive for further gains, RSI and Stochs are biased higher, price action is well above the daily cloud and 200-DMA.
   
• Immediate support is seen at 0.6717 (10-DMA), weakness only on breaks below 0.6683 (4H 5 DMA).
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Recommendation: Good to buy dips around 0.6760, SL: 0.6720, TP: 0.68/0.6850/0.6865