Morning Market Updates – NZD/USD

Intraday bias in the NZD/USD pair remains bullish for the moment. Another rise in the pair is mildly in favor. Breaking of the pair at the 0.6939 level will target a test on the 0.7023 level high. But we’d be cautious on strong resistance from there to limit an upside and bring another fall to extend the corrective pattern. On the downside, pair breaking at the 0.6836 level will resume the decline and will target medium term downtrend. In the bigger picture, a rise from the 0.6836 medium term bottom is seen as continuing pattern.

The current development suggests that it might be completed with waves up to the 0.6939 level already. The pair breaking at this level should see the pair rise to the 0.7003 level which will firm this bullish case. A decisive break at the 0.6939 key cluster supports confirms and brings the retest of this level. In case, a further rise from the 0.6836 level will resume and extend a strong resistance which can be seen at the 0.6939 level to limit upside.

The kiwi bulls have taken another step forward, having spent the most of past two weeks with the downward rally. The current strong bull candle broke out to close above the 0.6939 level. This is not only a good support area, but also breaks an important resistance. The pair continues with an uptrend and 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 0.6939 level, then the upside for a continued recovery will be opened. This would then open the key high at the 0.7003 level. The four hourly charts show a strong configuration on momentum and corrections will be seen as a chance to buy. The reaction to today’s early unwind will be interesting with the pair supporting above the 0.6920 level. A failure below support the 0.6920 level would re-open the bear control once more.

The NZD/USD pair tested the key support at the 0.6920 level. This kept its stability above it showing some bullish bias which attempt to resume the main bullish trend. We keep waiting to breach at the 0.6939 level to get rid of any negative pressure and continue to rise on the short term basis. Therefore, we will keep our bullish overview conditioned by holding above the 0.6920 level. The pair breaching at this levels will push the price towards the 0.6939 level that represents our first main target.

The pair’s expected trading range for today is between the 0.6920 support and 0.7003 resistance levels.

Expected trend for today: Bullish

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