FxWirePro: NZD/USD tests cloud resistance, outlook bullish on break above

Chart - Courtesy Trading View 

• NZD/USD was trading 0.53% higher on the day at 0.6883 at around 10:20 GMT.
   
• The pair is extending upside for the third consecutive session and is currently testing daily cloud resistance.
   
• Commodity currencies buoyed on broad based US dollar weakness after release of US inflation data overnight.
   
• Data released overnight showed U.S. consumer prices rose at their fastest rate in nearly 40 years.
   
• CPI printed at 7% month-on-month, slightly higher than forecast, while the increase in year-on-year CPI was the biggest since June 1982.
   
• The Fed in two weeks the Fed holds its first meeting of the year and rate outlook is seen unchanged by the CPI data. 
   
• Technical bias for the pair has turned bullish. The pair is set to resume upside after extending sideways at 200-week MA support.
   
• The pair has broken above 55-EMA, momentum is bullish and volatility is rising. Scope for test of 110-EMA at 0.6925.