NZD/USD: Bullish Above Classic S3 at 0.6838
NZD/USD is chipping away at the 0.69 handle to the upside within the ascending channel formed as a recovery of the 2016 downtrend.
NZD/USD is better bid in a better risk environment that has been brewing over the last number of sessions, with US T-bills offering more positive yields and bets back on the table for a Fed hike, telegraphed by hawkish speeches and comments from Fed members earlier in the week. The Chinese economy has also been showing signs of stabilization in the trade surplus and today we await GDP Q1 to confirm the notion of an improved risk environment.
NZD/USD's 25th March weekly candle extended the bullish scenario and trend, with a high of 0.6966 where bulls have their sights set for in this week's candle with a high of 0.6952 so far. Classic R3 is located 0.7006, although spot has dipped below the pivot of 0.6924 and below the 100 sma on the 1hr time frame at 0.6873 offering a neutral outlook for the near term. The 200 sma on the same time frame at 0.6838 registers classic S3 and offers a key area of support within this bull trend.