Morning Market Update – NZD/USD
Intraday bias in NZD/USD remains bullish for the moment and another rise is mildly in favor. A break at the 0.6976 level will target a test on 0.7025 high. But, we’d be cautious on a strong resistance from there to limit upside and bring another fall to extend the corrective pattern. On the downside, break at the 0.6941 level will resume the decline and will target the medium-term downtrend.
In the bigger picture, a further rise from the 0.6897 medium term bottom is seen as a continuing pattern. The current development suggests that it might be completed with waves up to the 0.6941 level. A break at this level should see the pair rise to the 0.6976 level which will firm this bullish case. A decisive break at the 0.6976 key cluster support levels will confirm and bring retest to this level. In such a case, a further rise from the 0.6976 level resumes and extends a strong resistance which can be seen at the 0.7025 level to limit upside.
Having spent the past two weeks with the uptrend rally, the Kiwi bulls have taken another step forward. The current strong bull candle broke out to close above the 0.6941 level. This is not only a good support area but also breaks an important resistance. The pair looks to continue with the uptrend and takes the market above the key resistance for the first time since early of this month. If the bulls can confirm this breakout above the 0.6941 level, then the upside for a continued recovery will be open. This would then open the key high at the 0.7025 level. The four hourly charts show a strong configuration on momentum and its corrections will now be seen as a chance to buy. The reaction to today’s early unwind will be interesting. The pair’s support is above the 0.6941 level. A failure below support at the 0.6941 level would re-open the bear control once more.
The pair tested the key support level at the 0.6941 and kept its stability above it. This shows some bullish bias now in an attempt to resume the main bullish trend and waits to breach at the 0.6976 level to get rid of any negative pressure and continue rising on the short-term basis.
Therefore, we will keep our bullish overview pressure conditioned by holding above the 0.6941 level and breaching these levels will push the price towards the 0.6976 level that represents our first main target.
The pair’s expected trading range for today is between the 0.6941 support and 0.7025 resistance levels.
Expected trend for today: Bullish
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