• FxWirePro: NZD/USD extends grind along 5-dma, on track to test 21-ema, stay long

    Source: FxWire Pro - Technicals / 21 Aug 2018 00:39:57   America/New_York

    Refer NZD/USD chart on Trading View

    • NZD/USD is extending grind higher along 5-DMA, intraday bias higher.
       
    • US dollar weakness across the board is supporting upside in the pair.
       
    • Markets perceiving the possibility of the Fed slowing down the pace of policy tightening in response to criticism from the White House weighing on the dollar.
       
    • The 10-year treasury yield fell more than five basis points to 2.82 percent yesterday, sending the USD lower across the board.  
       
    • Technical indicators on intraday charts are turning slightly bullish. Stochs have rolled over from oversold levels and RSI is biased higher.
       
    • Immediate resistance lies at 21-EMA at 0.6682. Further upside only on break above.
       
    • Bullish divergence on RSI and Stochs keeps scope for upside. Break above 21-EMA could see test of 23.6% Fib at 0.6755.

    Support levels - 0.6617 (5-DMA), 0.6544 (Aug 15 low)

    Resistance levels - 0.6682 (21-EMA), 0.6755 (23.6% Fib)

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-Trade-Idea-1417819) has hit TP1.

    Recommendation: Bias higher. Hold for further upside.

    FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 74.4547 (Neutral), while Hourly JPY Spot Index was at -106.198 (Bearish) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
     

Share on,