NZD/USD: Sets its eyes on 0.69000 once more?
Good morning Traders and welcome back to EverythingFX on this bright London morning!
The New Zealand Dollar is currently trading at 0.66707 against the US Dollar at the early start of today's London Session.
To get a clear picture of where we are technically it is always advised to started on the higher timeframes, the weekly at the moment is rejecting off of a nice level of support in and around the psychological level of 0.66000 where we can see as it stands is as a nice pin bar off these lows due to a shift in dollar sentiment over the past two days.
Looking on a 4-hour timeframe we can see we have finally broken structure, i do potentially see a minor retracement before continuing with its momentum to the upside, we do have a level of resistance at 0.67000 which does need to be broken to see us head all the way up to our next level of resistance at 0.69000 which evidently provides us with a good 230 pip position from current trading price. What would invalidate my bias is a daily break of 0.67000.
Fundamentally why I favour this pair is the change in sentiment in both the States and in New Zealand, After recently cutting interest rates we have seen a tick up in data out of the RBNZ which is showing us there has been an improvement since the cut. On the other hand, we have Fed Chair Jerome Powell commenting yesterday that the economy is slowing down and they are potentially looking to cut interest rates to boost stimulus in the US Economy, which will provide us with the driving power to challenge the highs once more! We have CPI readings coming out of the States today which will be key for the Fed so do stay tuned to our Market news section and Social Media accounts for Rapid updates!