NZD/USD advances through 0.6650 on higher commodities

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The NZD/USD pair snapped a 2-day decline and climbed further in the green territory on the first trading of the week, as a renewed risk-on wave lifted the NZD bulls.

    NZD/USD advances through 100-DMA at 0.6627

    Currently, the NZD/USD pair rises 0.30% to 0.6653, having posted fresh three-day highs at 0.6655 last hours. The resource-linked Kiwi rebounds higher this session, having found strong bids near 100-DMA, on the back of the ongoing strength seen in the industrial metals and oil prices. The pick-up in demand for the industrial metals can be mainly attributed to the surge in the Chinese bank loan growth backed by increased ending to the Government projects in the first year of 13th Five Year Plan.

    Moreover, a rebound in the Asian equities along with the oil prices also helped lift the sentiment around the NZD/USD pair. Looking ahead, markets now await the crucial US prelim GDP figures due later this week for fresh incentives on the pair.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6696/6700 (Feb 10 High/ round number), above which it could extend gains to 0.6755/63 (Feb 5 & Jan 5 High) levels. To the downside immediate support might be located at 0.6628/27 (1h 50-SMA/ 100-DMA) and from there to 0.6587/90 (200-DMA/ daily S3).
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