19 Sep 2013
NZD/USD explodes higher for second time in 24 hours; now testing 0.8399 Fibo resistance
FXstreet.com (Barcelona) - The NZD/USD blasted off to the upside on the FOMC “no-tapering” news late in the Wednesday session and took off a second time when the New Zealand GDP figures came out better than expected.
NZD/USD trading action to be driven by FOMC news Wednesday
The New Zealand GDP figures for Q2 came out better than analyst expectations early Thursday – sending the NZD/USD ripping higher for the second time in less than 5 hours. The data-induced rally sent the NZD/USD up from 0.8326 to 0.8405 before finally showing signs of topping short-term. Not coincidentally, the 161.8% Fibonacci projection line on the daily chart comes in at 0.8399.
At 18:00 GMT, the global investment community was thrown for a loop when Ben Bernanke and his FOMC cohorts shocked everyone by announcing that they would leave the current QE3 program in place for the foreseeable future. The greenback was crushed immediately and really made no serious attempts at rallying. The action forced the NZD/USD up from 0.8190 to 0.8380 in two hours before the cross took a breather.
Later in the day Thursday, NZD/USD traders will get to digest US Weekly Jobless Claims and existing home sales data as well as the Philly Fed Manufacturing Survey and the Conference Board’s Leading Economic Indicators.
Technical outlook for NZD/USD
Technicians say the obvious resistance is at 0.8399 on a closing basis. Given how oversold NZD/USD is (the Williams %R is at the highest level in over a year), the technicians say a consolidation / pullback would be anything but a surprise. The first downside target will be 0.8243 – the 23.6% Fibonacci retracement of the rally that has taken place this month.
NZD/USD trading action to be driven by FOMC news Wednesday
The New Zealand GDP figures for Q2 came out better than analyst expectations early Thursday – sending the NZD/USD ripping higher for the second time in less than 5 hours. The data-induced rally sent the NZD/USD up from 0.8326 to 0.8405 before finally showing signs of topping short-term. Not coincidentally, the 161.8% Fibonacci projection line on the daily chart comes in at 0.8399.
At 18:00 GMT, the global investment community was thrown for a loop when Ben Bernanke and his FOMC cohorts shocked everyone by announcing that they would leave the current QE3 program in place for the foreseeable future. The greenback was crushed immediately and really made no serious attempts at rallying. The action forced the NZD/USD up from 0.8190 to 0.8380 in two hours before the cross took a breather.
Later in the day Thursday, NZD/USD traders will get to digest US Weekly Jobless Claims and existing home sales data as well as the Philly Fed Manufacturing Survey and the Conference Board’s Leading Economic Indicators.
Technical outlook for NZD/USD
Technicians say the obvious resistance is at 0.8399 on a closing basis. Given how oversold NZD/USD is (the Williams %R is at the highest level in over a year), the technicians say a consolidation / pullback would be anything but a surprise. The first downside target will be 0.8243 – the 23.6% Fibonacci retracement of the rally that has taken place this month.