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NZD/USD meeting key resistance and in a correction

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD has rallied on the back of broad based weakness in the dollar post the FOMC minutes.

    The FOMC minutes proved that the majority of members are calling for a rate hike before the year is up. However, conditions are not appropriate currently and allows for risk-on markets to continue with the bid theme and that has propelled the Kiwi into a possible correction if the bird can break the 0.67 handle and close, challenging the August highs.

    "Many FOMC members expect conditions to raise rates to be met later this year, although several members were concerned about downside risks to the outlook for real activity and inflation, the minutes from the Fed’s September meeting showed," noted by Ani Salama, economist at FXStreet where you read a full insight into the minutes here.

    NZD/USD running into overbought territory

    However, NZD/USD RSI (14) is now at 60 and approaching overbought territory. 0.67 was scored but has run into supply there after the knee jerk although momentum indicators still favour the upside and R2 comes as 0.6713 ahead of R3 a 0.6773.
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