Yesterday the pound closed below the level of 1.2700 against the dollar for the first time since April 17. The nearest local support is in the area of 1.2635 (Friday's minimum). It is followed by 1.2600 and the 200-day moving average at the level of 1.2573.
The pair overcame the local resistance of 0.7200 and is trying to develop an upward trend. However, there is a strong resistance in the area of 0.7230 formed in February 2017. To overcome it the New Zealand currency will need something more seriously than just some dynamics in the commodity markets.
Yesterday Carolyn Wilkins, senior deputy governor of the Bank of Canada, made it clear that the Central Bank is pleased with the economic dynamics. The Canadian dollar has risen sharply across the market, particularly in pair with the US dollar. The currency rose by more than 100 pips breaking through the 200-day moving average in the area of 1.3328. USD/CAD closed below the 200MA for the first time since the end of February.
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