NZDUSD: 76c could be a tough barrier to beat

76c could be a tough barrier for NZDUSD to break, following last night’s positive inflation data form the US.

The Kiwi Dollar has enjoyed 3 weeks of gains since slumping to 4-year lows earlier this month, but the upside cold now be limited. There are several technical levels around the 0.760-62 region which have already been respected by this week’s high of 0.7613. (Technical levels include Nov’ 14 lows, 61.8% Fibonacci retracement and Monthly R1 pivot) Currently trading at 0.7540 we remain near this week’s open price. A close around here will produce a Rikshaw man Doji pattern below the 0.76 resistance, which denotes hesitancy from the bulls and will see the Kiwi start next week with a bearish undertone. This could well mark a turning point for NZDUSD in the weeks ahead. A break below 0.740 support will likely target 0.7316 and 0.7180. Focus will now shift to the revised GDP figures tonight form the US. The markets are expecting Q4 GDP to be revised down from 2.6% to 2.1%, but even a modest downgrade will likely be seen as a positive sign for US to bring further pressure upon NZDUSD. It is going to take quite a remarkable downgrade to Q4 GDP to help support NZDUSD this week, so I am not holding my breath for a bullish close this week.

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