NZD/USD extends bullish momentum towards 0.6900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The NZD/USD pair prolongs its upward trajectory and advances for the fourth consecutive session this Tuesday on the back of continued weakness in the greenback against its major competitors.

    NZD/USD takes out daily R1

    Currently, the NZD/USD pair trades 0.31% higher near fresh session highs printed at 0.6872, and aims to surpass Christmas highs of 0.6893. The solid rebound in the commodities’ prices coupled with higher Asian indices contributes to the upbeat momentum seen in the resource-linked NZD. The US oil is seen stabilizing around $ 37 while copper prices are up nearly 1%. Gold prices are on the rise and trades around 1072 levels.

    Moreover, the Kiwi finds support from thin markets as traders look past the monetary policy divergence between the Fed and RBNZ for now and continue to favour the NZD at the expense of the greenback in the last few trading sessions of 2015.

    Markets now shift their focus towards S&P/Case-Shiller home price indices along with consumer confidence data due later today, followed by jobless claims and the Chicago PMI on Thursday.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6893 (Dec 25 High), above which it could extend gains to 0.6904 (Oct 15 High) levels. To the downside immediate support might be located at 0.6848 (5-DMA) below that 0.6806 (10-DMA).
    For more information, read our latest forex news.

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