NZD/USD: Bulls in Charge Hunting Down Key Resistance

NZD/USD: Bulls in Charge Hunting Down Key Resistance

17 May 2016, 18:12
Roberto Jacobs

NZD/USD: Bulls in Charge Hunting Down Key Resistance

NZD/USD has rallied to take on the previous intra-session highs with some more ground to cover before 0.6847 highs of 12th May are met or exceeded.

NZD/USD has gained traction on the back of the GDT auction that came in line with the rise in futures showing a 3% gain in WMP leading the index higher to 2.6% vs 1.4% fall previously. Meanwhile, the CPI data from the U.S., inflation popped back up and goes towards the design of a June hike from the FOMC. However, despite the numbers, with the headline rising from 0.9%YoY to 1.1%YoY in April (0.4%MoM), and the core rate remaining above 2.0% (2.1%YoY), the greenback has not been able to take off with the dollar index meeting resistance at 94.84 from 94.30.

NZD/USD levels

NZD/USD are encouraging on the bullish side having taken out the 0.6800 in a clear break, pushing on through the 200 sma on the 1hr sticks at 0.6808 and on the approach for a break of 0.6847 the 12th May high as next major hurdle.

On a continuation, the 0.6920 4th May high is the next challenge. To the downside, 0.6778 is today's low and 0.6745 was yesterday's low. 0.6715 is the 9th of May low meeting 100 dma and breaking away below channel rising support.


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