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NZD/USD consolidates strong upside, more to come?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    NZD/USD consolidated the upside when the kiwi reached as high as 0.6722 before supply took the cross down to 0.6694 where the pair found traction and has been testing the 0.67 handle out again in early Asia.

    NZD/USD has followed suit of the Aussie as the commodity sector, specifically oil, managed a recovery on the open this week and have remained resilient. The US session has US socks rallying as well on the price of oil. "Brent prices extended gains in early US session to hit a session high of USD 34.44/barrel after the IEA report said US production is falling at a faster rate now," explained
    Omkar Godbole, analyst at FXStreet.

    For the day ahead, we are lacking on data and impetus and markets will instead trade on risk sentiment in Tokyo and China until the Europeans come back in with the Feb German IFO business survey that should show climate down to 106.8 ahead of US data in consumer confidence and housing data in home sales.

    NZD/USD levels

    NZD/USD met the aforementioned highs on a breakaway from the 200 sma on the hourly chart at the start of the week, located at 0.6640 today and is a cent higher than the pivot of 0.6617. On a continuation of the upside, R3 is located at 0.6752. To the downside, the lows 0f 0.6565 guard 0.6545 through the daily 200 sma at 0.6623. 0.6347 is the 2016 so far. RSI (14) on the hourly is at 60 so there could be more upside to come yet.
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