NZD/USD: Can the Rally Carry On?
NZD/USD is struggling to continue perform having been at the top of its game this week, following a sell-off in the greenback and a better performing commodities sector over the last couple of months.
NZD/USD was a rally from 0.6662 lows on the 27th March to meet highs of 0.6965 earlier in the session before further offers rejected the bid and leaves the downside exposed on a double top scenario ahead of the nonfarm payrolls tomorrow. Given the positive ADP report as a potential prelude to tomorrow's jobs data, the dollar could week find a bid to close the week down on a better note than how it started off.
While the upside is a challenge at this stage, given the ground covered already in a relatively short period of time and as momentum drags along a neutral scale, the bird still remains in positive territory having breached the daily double top between Oct 2015 business and late December 2015 business.
NZD/USD is oscillating around the pivot currently that is located at 0.6910. The other bullish factors are the break through the ascending resistance line from 3rd Feb highs and having crossed up through the 50 weekly sma this week for the first time since Jan 2014 which is located at 0.6730. However, on RBNZ intervention, for example, 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.
(Market News Provided by FXstreet)