NZD/USD Recovers to Move Back Above 0.6900 Handle

NZD/USD Recovers to Move Back Above 0.6900 Handle

5 May 2016, 09:11
Roberto Jacobs

NZD/USD Recovers to Move Back Above 0.6900 Handle

Extending its bounce from Wednesday's low of 0.6860, the NZD/USD pair rose above 0.6900 on Thursday and is currently trading at the day's peak of 0.6910.

On Wednesday, the pair faded its spike to 0.6940 level on strong NZ employment numbers and fell to its weekly low level of 0.6860 on some positive economic data from the US. The pair rebounded from an important support near 0.6850-40 area and from near oversold conditions on hourly chart.

Moreover, the pair already seems to have formed a bearish double-top chart pattern near 0.7050-55 area, which would be confirmed once the pair decisively weakness below an important horizontal support near 0.6850-45 zone. The pair is currently trading just below 0.6915 level (hourly 50-SMA).

Technical levels to watch

On a sustained move above 0.6915 resistance, the pair could immediately aim towards testing yesterday's high level resistance near 0.6940 level, which if cleared seems to dart towards its next major resistance near 0.6975-80 area.

On the downside, 0.6850-45 area remains key support to watch for, which if broken would confirm the bearish double-top formation and should trigger a fresh leg of weakness immediately towards 50-day SMA support near 0.6810 level.


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