Yahoo Finance Morning Market Update – NZD/USD
Intraday bias in the NZD/USD pair remains bullish for the moment. The pair’s another rise is mildly in favor and breaking of the 0.6845 will target a test on the 0.6873 high levels. But we’d be cautious on the strong resistance from there to limit upside and bring another fall to extend the corrective pattern. On the downside, the pair breaking of the 0.6798 level will resume the decline and targets the medium term downtrend.
In the bigger picture, a rise from the 0.6798 medium term bottom has seen as a continuing pattern. The current development suggests that it might be completed with waves up to the 0.6843 level already. Break of the level should see the pair rising to the 0.6873 level will firm this bullish case. A decisive break of the 0.6873 key level cluster supports confirms and brings retest of this level. In such a case, a further rise from the 0.6873 level will resume and extend a strong resistance towards the 0.6891 level to limit upside.
The pair has been in a downtrend since the first week of the month. But, the kiwi bulls have taken another step forward current strong bull candle and broke out to close above the 0.6843 level. This is not only a good support area, but also breaks an important resistance continues with the uptrend. This takes the market above the key resistance for the first time since early of this month. If the bulls can confirm this breakout above the 0.6843 level, then the upside for a continued recovery will be open. This would then open the key high at the 0.6873 level. The four hourly chart show a strong configuration on momentum and corrections will now be seen as a chance to buy. The reaction to today’s early unwind will be interesting with support above the 0.6816 level. A failure below support at the 0.6816 level would re-open the bear control once more.
The NZD/USD pair has tested the key support 0.6816 level and kept its stability above it. This shows some bullish bias in attempt to resume the main bullish trend. The pair keeps waiting to breach the 0.6843 level to get rid of the negative pressure and continue to rise on the short term basis.
Therefore, we will keep our bullish overview conditioned by holding above the 0.6816 level and breaching these levels will push the price towards the 0.6845 level that represents our first main target.
The pair’s expected trading range for today is between the 0.6816 support and 0.6845 resistance levels.
Expected trend for today: Bullish
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This article was originally posted on FX Empire
