Yahoo Finance Morning Market Updates – NZD/USD
Intraday bias in NZD/USD pair remains neutral as it is still bounded in range of the 0.6862 level. In case of another recovery, an upside movement should be limited below the 0.6906 resistance level to bring fall resumption. Breaking at the 0.6862 level will resume to decline from key support level. However, a decisive break of the 0.6883 level will indicate that pull back from the 0.6862 level is completed and a medium term rise is resuming.
In the bigger picture, NZD/USD hits a strong support from the long term falling trend line. The current development is starting to favor that corrective rebound from the 0.6862 level low has completed. A Decisive break of 0.6883 will confirm this bullish case and will target a test on the 0.6906 level high next, with prospect of resuming the upside term. Nonetheless, a break of the 0.6883 resistance level will restore the rise from the 0.6862 for high of 0.6906 levels.
With such a strong momentum, the pair continues to build and it had only seemed like a matter of time. However, the renewed weakness of the dollar since yesterday has helped to drive the break above the 0.6862 level. This had been the broad projection target from the old range breakout and the target has been achieved. This means that the NZD/ USD pair is trading at its highest since last month when it hit a high of the 0.6976 level. But, on the longer term charts the pair is testing the bottom of the two week trading range between the 0.6862and 0.6976 levels. 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 only real caveat on the near term horizon is the New Zealand REINZ House Price Index (MoM) declined to 0.1% from previous 13.6% is initially supportive with 0.6883 and also breakout resistance. The four hourly chart shows support at the 0.6862 level.
The NZD/USD pair finds difficult to breach the 0.6883 level until now. The pair continues to fluctuate within to recover the track near the mentioned level. While the stochastic continues to provide the positive signals on the intraday time frames and motivates the price to breach the mentioned level followed by heading towards our positive targets that begin at the 0.6883 and extend to 0.6906 levels.
In general, we will keep our positive overview on the intraday and short term basis unless the pair breaks at the 0.6862 level and holds below it.
The pair’s expected trading range for today is between the 0.6862 support and 0.6906 resistance levels.
Expected trend for today: Bullish
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This article was originally posted on FX Empire
