FxWirePro: NZD/USD struggles at major trendline resistance at 0.7185, breakout to see further upside

• NZD/USD up 0.13% on the day, bias bullish, on track to test 0.72 handle.
   
• Mixed US jobs numbers on Friday failed to offer any respite to the USD bulls, sentiment around the greenback broadly undermined.
   
• The pair is extending grind higher after breakout at 200-DMA, but struggles at major trendline resistance at 0.7185.
   
• Technical indicators still bullish, we do not see any signs of reversal, scope for further upside.
   
• Breakout at 0.7185 to see test of 0.72 handle, ahead of 0.7261 (61.8% Fib retrace of 0.7558 to 0.6780 fall).
   
• On the flipside, retrace below 200-DMA at 0.7108 could see weakness in the pair.
   
• Focus now on China’s and US CPI data due this week for further impetus.

Support levels - 0.7137 (5-DMA), 0.7108 (200-DMA), 0.7058 (100-DMA)

Resistance levels - 0.7185 (Trendline), 0.72, 0.7261 (61.8% Fib), 0.7298 (Aug 29 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-200-DMA-at-07104-breakout-to-see-further-upside-1076181) is approaching final targets.

Recommendation: Watch out for break above 0.7185 for further upside.

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