#NZDUSD @ 0.56747 takes the bids to extend the previous day’s rebound from 31-month low., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• NZD/USD takes the bids to extend the previous day’s rebound from 31-month low.
• China’s CPI rose to 2.8% YoY but PPI eased to 0.9% during September.
• Sustained break of 50-SMA, firmer oscillators favor buyers to cross the monthly resistance line.
• Sellers may not risk entries beyond four-day-old support line.

The pair currently trades last at 0.56747.

The previous day high was 0.5655 while the previous day low was 0.5512. The daily 38.2% Fib levels comes at 0.56, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5567, expected to provide support.

NZD/USD renews an intraday high around 0.5680 as bulls cheer a jump in China’s Consumer Price Index (CPI) during early Friday. Even so, the 100-SMA challenges the previous day’s recovery from a 2.5-year low.

That said, China’s headline Consumer Price Index (CPI) matched upbeat market forecasts by rising 2.8% in September while the Producer Price Index (PPI) fell short of meeting expectations during the stated month, down to 0.9% versus 1.0% forecasts and 2.3% prior.

It’s worth noting that the Kiwi pair’s successful break of the 50-SMA joins bullish MACD signals and firmer RSI (14), not overbought, to keep buyers hopeful.

However, a clear upside break of the one-month-old descending resistance line, around 0.5690 by the press time, appears necessary for the NZD/USD bull’s conviction. Following that, the monthly high of 0.5815 will be in focus.

Alternatively, pullback moves may initially aim for the 50-SMA support near 0.5645, a break of which could direct the quote toward an upward-sloping support line from Tuesday, close to 0.5610 at the latest.

In a case where the NZD/USD prices break 0.5610 support, the odds of witnessing a slump towards the fresh yearly low, around 0.5510 of late, can’t be ruled out.

Trend: Further upside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5669 at the time of writing. Pair opened at 0.5635 and is trading with a change of 0.60% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5726, 50 SMA 0.6002, 100 SMA @ 0.6148 and 200 SMA @ 0.6421.

The previous day high was 0.5655 while the previous day low was 0.5512. The daily 38.2% Fib levels comes at 0.56, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5567, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5546, 0.5457, 0.5403
• Pivot resistance is noted at 0.5689, 0.5744, 0.5833

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