The pair is extending gains above 50-DMA, edged above 20-DMA and is currently hovering above daily cloud.
Technical studies support upside, RSI on dailies is holding above 50 levels and Stochs are biased higher.
Decisive cloud break out could see further upside. Scope then for test of immediate resistance at 0.7435 (trendline) ahead of 0.7558 (July 27 high).
On the flipside, rejection at 20-DMA could see weakness till 0.7182 (200-DMA). Violation at 200-DMA could see major weakness.
Market focus will be on the US inflation figures along with New Zealand GDP figures at 21:45 GMT for further impetus.
Support levels - 0.7301 (20-DMA) , 0.7287 (5-DMA), 0.7241 (55-EMA)
Resistance levels - 0.7341 (61.8% Fib retrace of 0.7437 to 0.7186 fall), 0.74, 0.7435 (trendline)
Watch out for decisive break above daily cloud, target 0.7345/ 0.74/ 0.7435
Technical studies support upside, RSI on dailies is holding above 50 levels and Stochs are biased higher.
Decisive cloud break out could see further upside. Scope then for test of immediate resistance at 0.7435 (trendline) ahead of 0.7558 (July 27 high).
On the flipside, rejection at 20-DMA could see weakness till 0.7182 (200-DMA). Violation at 200-DMA could see major weakness.
Market focus will be on the US inflation figures along with New Zealand GDP figures at 21:45 GMT for further impetus.
Support levels - 0.7301 (20-DMA) , 0.7287 (5-DMA), 0.7241 (55-EMA)
Resistance levels - 0.7341 (61.8% Fib retrace of 0.7437 to 0.7186 fall), 0.74, 0.7435 (trendline)
Watch out for decisive break above daily cloud, target 0.7345/ 0.74/ 0.7435
