NZD/USD extends gains above 0.7000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD is rising sharply today, strengthened particularly after breaking above 0.6970 (March highs) and also on top of the 0.7000 handle. The pair peaked at 0.7053 and then pulled back, despite an increase in dairy prices at the latest auction.

    The auction ended with a gain in the GDT (GlobalDairyTrade) Price Index up 3.8%. The Kiwi remained steady in the market after the report, consolidating gains versus the US dollar.

    NZD/USD holding above 0.7000

    The pair peaked at 0.7053, the highest since June 11 and then pulled back but remained on top of 0.7000. Currently, it trades at 0.7030/35, up 1.20% for the day, rising for the third day in a row.

    From a technical perspective, with NZD/USD consolidating above 0.6940 and 0.7000, the door for more gains appears to be open. The next medium-term resistance is seen around 0.7180 (February and March 2015 lows).

    On the opposite direction, a retreat that pushes the pair significantly below 0.6940 could remove Kiwi’s strength.
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