NZD/USD: through key resistance levels, what next?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 31, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    NZD/USD has been the top performer, rallying from 0.6662 lows on the 27th March and reaching as high as 0.6964.

    NZD/USD performed strongly in the London morning, without a known catalyst and rallied to the highest level since June 17th 2015, reaching the aforementioned 0.6965, but settled down in NY to trade within a 50 pip range in the lower end of the 0.69 handle. In the US, the main event that supported the dollar was the ADP report as a positive prelude to the nonfarm payrolls on Friday.

    We also has Chicago's Fed president Evans speak on two occasions. First he was on CNBC and then again in a prepared speech to the Forecasters Club in NY suggesting that the risks are tilted towards the downside, suggesting a “very shallow path” for interest rates was likely in the next 3 years, exposing the downside in the greenback again.

    NZD/USD levels

    Now that we have breached the daily double top between Oct 2015 business and late December 2015 business, the undertone remain bullish for the bird, despite being fundamentally too high for the RBNZ and consolidating at the pivot currently.

    The second factor underpinning the bullish bias is the fact that the bird has crossed up through the 50 weekly sma this week for the first time since Jan 2014. However, on intervention or some unforeseen turn of negative events for the kiwi, the downside levels to note are 0.6900, 0.6880, 29th high, 0.6840, support on fades on 29th rally and 50 sma 1hr, S1 0.6783 and S3 0.6749.
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