FxWirePro: NZD/USD extends bull run to test fresh 3-month high, focus on NFP for further impetus
Source: FxWire Pro - Technicals / 07 Jun 2020 13:20:22 America/New_York
NZD/USD chart - Trading View
NZD/USD is extending bull run, has hit fresh 3-month high at 0.6492, momentum with the bulls.
The pair has gained a whopping 4.51% for the week as price action extends 200-DMA breakout.
Technical indicators are strongly bullish. GMMA Indicator shows strong upside potential in the near-term.
Price action is above Ichimoku cloud and rising Chikou Span suggests upside continuation. Scope for test of 0.66 mark.
Oscillators are in overbought territory and warrant some caution. That said, there are no signs of reversal and pullbacks are also likely to be shallow.
Focus on key U.S. Nonfarm Payrolls data (scheduled at 12:30 GMT) which is expected to show a further deterioration in the state of the US labour market.
A weaker NFP data will add pressure on USD, supporting the pair higher. 110W EMA at 0.6544 in sight.
On the flipside, 5-DMA is immediate support at 0.6407. Retrace below 200-DMA negates upside bias.
Summary: NZD/USD trades with a strong bullish bias. Technical indicators support further gains. Next bull target lies at 0.6542 (110W EMA) ahead of 0.6608 (88.6% Fib).
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