FxWirePro: NZD/USD refreshes 5-week highs, 200-DMA and channel breakout reinforces upside bias
NZD/USD chart - Trading View
NZD/USD was trading 0.60% higher on the day at 0.7125 at around 05:15 GMT
Previous Week's High/ Low: 0.7077/ 0.6911
Previous Session's High/ Low: 0.7105/ 0.7049
Kiwi tracks Australian dollar higher.
Retreating US bond yields prompted fresh USD selling and provided support to the pair.
The pair finally broke major confluence barrier at 200-DMA and channel top raising scope for further upside.
Monday's disappointing Chinese data which showed that the economic growth decelerated sharply from 7.9% to 4.9% in Q3 dents sentiment and could hamper gains.
Also, prospects for an early Fed taper might help limit any deeper USD losses and cap upside in the pair. Focus on US Housing Start, and Building Permits for impetus.
- NZD/USD has broken major resistance at 200-DMA and channel top
- Momentum is strongly bullish, Stochs and RSI are biased higher
- Volatility is high and rising as evidenced by widening Bollinger bands
- MACD and ADX support further upside in the pair
Major Support and Resistance Levels:
Support - 0.7097 (200-DMA), Resistance - 0.7195 (200-month MA)
Summary: NZD/USD trades with a major bullish bias. Immediate resistance is seen at 50% Fib at 0.7134. Next major resistance lies at 200-month MA at 0.7195.