NZD/USD Bulls Committed, Targeting 0.7025

NZD/USD Bulls Committed, Targeting 0.7025

29 April 2016, 07:03
Roberto Jacobs

NZD/USD Bulls Committed, Targeting 0.7025

NZD/USD is currently bid on the daily sticks and combating the downside from the 2016 highs on the 0.70 handle scored earlier in the week at 0.7053 on the back of the RBNZ staying put.

NZD/USD: too high, expecting one more cut - UOB

U.S. GDP Q1 reviewed: slowdown in momentum - Nomura

NZD/USD has been advancing in a commodity currency friendly environment overnight on the back of U.S. dollar weakness and poor U.S. GDP, but offers at 0.6980 resistance capped the momentum and the price drifted back to the supporting 20 sma on the 1hr sticks at 0.6959 where the price has stabilized with a low of 0.6956.

For the session ahead, we are light on liquidity with Japan out, but we look ahead to ANZ business confidence on the turn of the hour. Earlier, NZ building permits for March arrived at -9.8% m/m vs prior 10.8% but there was little reaction.

NZD/USD levels

While holding above the 50 sma on the 4hr sticks at 0.6925 the bird is better bid above there. The 21st April highs were crossed yesterday and the price remains determined without lower lows so fa, despite the resistance seen earlier. The upside target in the near-term comes as the 20th of April highs at 0.7025. A correction of the move could put the bullish channel's support into jeopardy with momentum and a reversal targeting the 50 dma at 0.6783 is key support.


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