FxWirePro: NZD/USD holds break above 200-DMA, focus on Fed policy meet for further impetus

NZD/USD chart on Trading View used for analysis

• NZD/USD holds break above 200-DMA, trades 0.26% higher on the day at 0.6863 at the time of writing.
   
• Antipodean currencies witnessing some buying sentiment today, NZD extends strong business confidence index led gains.
   
• Technical indicators are mixed, there is no clear indication. Focus on Fed policy meeting for further impetus.
   
• Markets are widely expecting a dovish-leaning guidance from the Fed which could add downside pressure on the dollar, supporting the pair higher.
   
• Also due this week is New Zealand third quarter GDP data, which is expected to show that the economy expanded at an annual pace of 2.8 percent. Significant surprise could drive price action higher. 
   
• If the Fed retains hawkish bias, squashing expectations of 2019 rate hike pause, we could see major weakness in the pair.

Support levels - 0.6838 (200-DMA), 0.6811 (38.2% Fib), 0.6762 (55 EMA)

Resistance levels - 0.69, 0.6930 (50% Fib),  0.6969 (Dec 4 high)

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