- NZD/USD up 0.55% on the day, breaks 20-DMA resistance at 0.6880, bullish divergence on RSI and Stochs keeps scope for upside.
- Better-than-expected Chinese services PMI data bolstered the rally. Also, comments by the RBNZ Governor Spencer provide fresh boost.
- US dollar correcting across the board, following yesterday’s sharp rebound, supporting the pair higher.
- The major is extending sideways after break below major trendline support at 0.6995.
- Major support lies at 0.6818 'Double Bottom', break below will see further weakness.
- Scope then for test 0.6780 (Nov 17 lows) and then 0.6750 (trendline support).
- Attention turns towards the US economic releases, including the trade balance and ISM services PMI, due later in the NA session for further impetus.
Support levels - 0.6880 (20-DMA), 0.6870 (5-DMA), 0.6818 (double bottom), 0.6809 (61.8% Fib retrace of 0.6347 to 0.7558 rally)
Resistance levels - 0.6952 (50% Fib), 0.6973 (50-DMA), 0.6980 (Nov 9 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -29.3052 (Neutral), while Hourly USD Spot Index was at 2.53811 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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