8 Apr 2014
NZD/USD breaks 0.8610/15, en-route to 0.8650
FXStreet (Bali) - NZD/USD is extending to the upside in Asian trading, posting a new 3-day high at 0.8634.
The uptrend, which saw a setback last week after failing to breakout the 0.87 following several attempts, appears to be once again gaining enough momentum to suggests that a retest of 0.8650 is in the cards ahead of a possible 0.8690/87 retest.
As can be seen on the hourly chart, after continuous pressure built against the 0.8610/15, buyers were finally able to breakout the resistance, leading to a further squeeze of shorts; between 0.8615 and 0.8650 long players may exploit a void area.
According to Westpac FX Strategists: "The NZD has struggled against a resurgent US dollar lately, with weaker dairy prices not helping the cause. We are neutral near term though still expect higher levels as the RBNZ continues to raise rates."
The uptrend, which saw a setback last week after failing to breakout the 0.87 following several attempts, appears to be once again gaining enough momentum to suggests that a retest of 0.8650 is in the cards ahead of a possible 0.8690/87 retest.
As can be seen on the hourly chart, after continuous pressure built against the 0.8610/15, buyers were finally able to breakout the resistance, leading to a further squeeze of shorts; between 0.8615 and 0.8650 long players may exploit a void area.
According to Westpac FX Strategists: "The NZD has struggled against a resurgent US dollar lately, with weaker dairy prices not helping the cause. We are neutral near term though still expect higher levels as the RBNZ continues to raise rates."