NZD/USD Fundamental Analysis for April 1, 2013

The NZD/USD is trading higher this morning after the U.S. ISM Index missed the pre-report guesses. This sent a signal to traders that the pace of the recovery slowed down last month. Later this week, investors will get the opportunity to react to last month’s U.S. Non-Farm Payrolls. Expectations are for an increase of 200,000 jobs.

Technically, early resistance helped drive the market through a 50% level at .8347 where it accelerated to the downside. The quick turnaround following the breakdown suggests that short-covering is driving the market higher this morning.

The charts indicate that a breakout over a downtrending Gann line at .8378 could trigger a full reversal in the market and set up a possible move through a Fibonacci level at .8391 and a main top at .8395.