NZD/USD breaks out of range trade, targets 0.6835

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
184 0 8
NZD/USD             broke out of 0.6745-0.6565 range trade which it was trading in since the past one month.

Positive reversal in global risk sentiment has boosted high-yielding risky currencies which have outperformed last week.

The major is taking a breather after last week's rally, momentum is higher, we see scope for gains in the pair upto 0.69 levels.

Immediate resistance is seen at 0.6819 (Mar 4th highs) and then at 0.6835 (Jan 4th highs), while supports on the downside are seen at 0.6724 (5-DMA) and further below at 0.6684 (10-DMA).

RBNZ meets this Thursday and a rate cut is full priced in. Markets have intensified expectations for an OCR cut, following a slump in NZ             business confidence and inflation expectations.

Other NZ             data which could impact the pair are: Q4 manufacturing (Tue), electronic spending (Wed), and manufacturing PMI and food prices ( Fri             ).

Recommendation: Buy dips around 0.6774, SL: 0.6724, TP: 0.6835/0.6850
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