NZD/USD: Bulls Testing Bears Commitments at 0.68 Handle
NZD/USD is testing the upper boundaries of the 0.67 handle and has penetrated the 0.6800 level with a high so far of 0.6809.
The move comes with a recovery in oil that made $47.48 WTI the high in a continuation of the 11th May spike from $44.01bbls. Industrial metals are rising also although gold has taken a hit from the highs of $1,288 to $1,272.98 the low. For the week ahead, the highlights will be in the U.S. CPI and Wed April FOMC minutes that will provide some key direction to the markets on the Fed's assessment for the outlook on growth and inflation, as well as the prospects for a June or Sep rate hike.
A clear break of 0.6800 would need to penetrate the 200 sma on the 1hr sticks at 0.6819. 0.6847 is 12th May high and 0.6920 us the 4th May high meeting the 200 sma on 1hr time-frame for that trading day. To the downside, 0.6745 is today's low, 0.6715 is the 9th of May low meeting 100 dma and breaking away below channel rising support.