FxWirePro: NZD/USD Recovers from Session Lows at 0.6746, Good to Buy Breakout Above 0.6770
- Kiwi hammered earlier on the day on account of poor Chinese data, Chinese retail sales, industrial output and fixed asset investment data came in below estimates.
- Risk conditions slightly improving on the back of surging Japanese and Australian stocks.
- NZD/USD hit lows of 0.6746 and is now attempting a minor recovery, finds strong resistance at 0.6770.
- Breaks above could see next resistance at 0.6778 (May 10th highs), 0.6784 (5-DMA) and then 0.6791 (Mar 21st highs).
- Weakness only below 0.6735 (trendline support). Breaks below could see test of 0.6715 and then 0.67 levels.
- Data this week which could influence the Kiwi include the NZ PPI, GDT price index and inflation expectations, while the FOMC minutes will be also closely watched for fresh momentum in the pair.
Recommendation: Buy breakout above 0.6770, SL: 0.6735, TP: 0.68/0.6845