29 Apr 2016
NZD/USD could be eyeing to reclaim 0.7000
The NZD/USD pair continues to inch higher and has now moved above yesterday's high to trade near 0.6988, within striking distance of reclaiming 0.7000 handle.
The pair on Thursday shot up on broad USD weakness led by BoJ disappointment and as RBNZ left its key interest rates unchanged. However, RBNZ said in its statement “Further policy easing may be required to ensure that future average inflation settles near the middle of the target range.” The statement appeared to indicate that the central left the doors for a June cut open. This could now be the key fundamental aspect that could keep the NZD/USD pair capped in the near-term.
Technical levels to watch
Should the pair extends the ongoing momentum and manages to break past 0.7000 handle, it could be aiming back towards last week's high level resistance near 0.7050-55 zone.
On the flip side, inability to reclaim 0.7000 handle and a subsequent reversal could drag the pair back towards its immediate support near 0.6950 level before the pair extends its weakness towards 0.6910-0.6900 round figure mark support.
The pair on Thursday shot up on broad USD weakness led by BoJ disappointment and as RBNZ left its key interest rates unchanged. However, RBNZ said in its statement “Further policy easing may be required to ensure that future average inflation settles near the middle of the target range.” The statement appeared to indicate that the central left the doors for a June cut open. This could now be the key fundamental aspect that could keep the NZD/USD pair capped in the near-term.
Technical levels to watch
Should the pair extends the ongoing momentum and manages to break past 0.7000 handle, it could be aiming back towards last week's high level resistance near 0.7050-55 zone.
On the flip side, inability to reclaim 0.7000 handle and a subsequent reversal could drag the pair back towards its immediate support near 0.6950 level before the pair extends its weakness towards 0.6910-0.6900 round figure mark support.