FxWirePro: NZD/USD holds above 5-DMA at 0.7286, cloud break out could see further upside

• NZD/USD is trading 0.27% higher on the day at 0.7314, intraday bias higher.
   
• The pair is extending gains above 50-DMA, edged above 20-DMA and is currently hovering above daily cloud.
   
• Technical studies support upside, RSI on dailies is holding above 50 levels and Stochs are biased higher.
   
• Decisive cloud break out could see further upside. Scope then for test of immediate resistance at 0.7435 (trendline) ahead of 0.7558 (July 27 high).
   
• On the flipside, rejection at 20-DMA could see weakness till 0.7182 (200-DMA). Violation at 200-DMA could see major weakness.
   
• Market focus will be on the US inflation figures along with New Zealand GDP figures at 21:45 GMT for further impetus.

Support levels - 0.7301 (20-DMA) , 0.7287 (5-DMA), 0.7241 (55-EMA)

Resistance levels - 0.7341 (61.8% Fib retrace of 0.7437 to 0.7186 fall), 0.74, 0.7435 (trendline)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-finds-stiff-resistance-at-07255-good-to-go-long-above-07265-1185213) has hit TP1.

Recommendation: Watch out for decisive break above daily cloud, target 0.7345/ 0.74/ 0.7435.

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