NZD/USD: bulls making headway to key resistances

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD is one of the best performers along with the Aussie with a comeback in commodity prices and bulls genuinely committed to the upside.

    Commodities: CFTC wrap−up and big swings − TDS

    The bird has been recovering since the sell-off after the RBNZ's Monetary Policy Statement (MPS) and with them cutting the OCR by 25bp to 2.25% while signalling to the markets that there is another cut to come to take the terminal rate to 2.0%.

    Also, the upside might be limited fundamentally given the statement about the level of the bird. “The trade-weighted exchange rate is more than 4 percent higher than projected in December, and a decline would be appropriate given the weakness in export prices.”. Meanwhile, heads stay on commodity prices and for the week ahead, the FOMC will be grabbing the headlines and markets attention.

    NZD/USD levels

    NZD/USD is technically in neutral territory with RSI in the 50's across the different and commonly used time frames. The market is above the pivot of 0.6725 with R1 at 0.6793, R2 at 0.6842 and R3 at 0.6910 to breach the 2016 opening level and Dec 2015 highs at 0.6883. To the downside, S1 is located at 0.6676 and S3 at 0.6559 on a break of the 50 dma at 0.6603 and S2 at 0.6608.
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