Our previous NZDUSD analysis seems to be correct and the NZDUSD pair rocketed higher in previous week as the Kiwi rose 2 per cent on Thursday. The NZDUSD pair was seen to be trading at 0.20per cent higher on Monday and is now testing the 100-day moving average near 0.6660.
If the Kiwi jumps above the 100-day moving average, the current bullish momentum could be confirmed, targeting the strong resistance of 0.6720, where pervious highs and lows converged.
On the downside, the pair must defend the first major support of 0.66 if bulls want to consider maintaining the current bullish breakout. Another buying zone could be at the broken trend-line, which is near 0.6560.
The Dollar index failed to push to new cycle highs and slid from the 97.00 level, which could boost the Kiwi over the next few days. Moreover, the NZD is heavily oversold and if investors start to exit their short positions, the Kiwi could push further higher.
Disclaimer:
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
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