Morning Market Update – NZD/USD

NZD/USD’s strong rally and its break of 0.7306 resistance indicates that the decline is already completed at 0.7233. Intraday bias is back on the upside for 0.7344 and possibly above. But then, we’ll be cautious on topping again as it approaches medium term level at 0.7318. On the downside, below 0.7233 minor support will turn bias back to the downside for 0.7218 short term bottom.

Looking at the bigger picture, we’re still treating the price actions from 0.7233 low as a corrective pattern. And, as long as support area holds, long term up trend from support area is expected to resume sooner or later. A break of 0.7318 high will target 0.7344 key resistance level. However, a firm break of 0.7318 will indicate that rise from 0.7233 is developing into a medium term rebound, rather than a sideway pattern. In such case, a stronger rise should be seen above.

The pair has broken out once more. With such strong momentum that continues to build, it had only seemed like a matter of time, however the renewed weakness of the dollar since yesterday has helped drive the break above 0.7306. This had been the broad projection target from the old range breakout. This now means that the pair is trading at its correction zone, but also on the longer term charts is now testing the top of the trading range between 0.7233 and 0.7344. As yet there seem to be little reason not to believe that the kiwi can continue to push higher, so buying into the intraday dips remains viable. The daily momentum indicators are all strongly

configured. The four hourly chart shows support at 0.7233.

The NZD/USD pair resumed its positive trading after leaning on 0.7233 level yesterday, approaching from the recently recorded bottom at 0.7233, waiting for more rise in the upcoming sessions to touch the bullish channel’s resistance that rises now to 0.7344.

Therefore, the bullish trend will remain valid conditioned by holding above 0.7233, as breaking this level will push the price to test areas that start at 0.7306 and might extend to 0.7344 before any new attempt to rise.

Expected trading range for today is between 0.7233 support and 0.7334 resistance.

Expected trend for today: Bullish
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