24 Mar 2014
NZD/USD: Sideways above the 0.85 mark
FXStreet (Bali) - NZD/USD has been displaying choppy price action conditions following last Wednesday's FOMC, with the rate finding solid buying interest at 0.85, although persistent selling keeps the price below 0.8550/60.
During today's Asian open, the pair had a sizeable 22 pips gap to the upside, trading as high as 0.8560, before a moved down to fill the gap. A trendline coming off Jan 31 low, along with 0.85, are the two main hurdles to overcome next, while on the upside, clearance off .8560 may allow a retest of next round number at 0.86 (March 13 high). With regards to domestic data, New Zealand will publish trade balance on Thursday and the ANZ Business Confidence on Friday.
NZD/USD outlook
According to Jim Langlands, Founder at FXCharts: "While 0.8525 holds, the uptrend remains intact although the dailies look to be rolling lower and thus it does look as though selling into near term strength for another test of 0.8500 ( 23.6% of 0.8051/0.8640) may be the way to go. A break of 0.8500 would hint at a deeper decline, possibly towards 0.8425 (23.6% of 0.7718/0.8640) and 0.8415 (38.2% of 0.8051/0.8640)."
Langlands adds: "On the topside, if the Kiwi can break back above 0.8565, it could then head back towards 0.8600 although this looks unlikely in the near term; however while it remains above 0.8500, another run at 0.8600 not be ruled out altogether. More likely, I suspect we are in for a deeper correction towards 0.8450/00 before we see another attempt on the topside, albeit we may see no conclusive action in the next few days, with no data due to drive it either way."
During today's Asian open, the pair had a sizeable 22 pips gap to the upside, trading as high as 0.8560, before a moved down to fill the gap. A trendline coming off Jan 31 low, along with 0.85, are the two main hurdles to overcome next, while on the upside, clearance off .8560 may allow a retest of next round number at 0.86 (March 13 high). With regards to domestic data, New Zealand will publish trade balance on Thursday and the ANZ Business Confidence on Friday.
NZD/USD outlook
According to Jim Langlands, Founder at FXCharts: "While 0.8525 holds, the uptrend remains intact although the dailies look to be rolling lower and thus it does look as though selling into near term strength for another test of 0.8500 ( 23.6% of 0.8051/0.8640) may be the way to go. A break of 0.8500 would hint at a deeper decline, possibly towards 0.8425 (23.6% of 0.7718/0.8640) and 0.8415 (38.2% of 0.8051/0.8640)."
Langlands adds: "On the topside, if the Kiwi can break back above 0.8565, it could then head back towards 0.8600 although this looks unlikely in the near term; however while it remains above 0.8500, another run at 0.8600 not be ruled out altogether. More likely, I suspect we are in for a deeper correction towards 0.8450/00 before we see another attempt on the topside, albeit we may see no conclusive action in the next few days, with no data due to drive it either way."