NZD/USD bulls in play with eyes on 0.6480
|- NZD/USD near-term risks are balanced fundamentally.
- NZD/USD W-formation is bullish towards 0.6480 as a probable scenario for the days ahead to meet prior highs and a -61.8% ratio.
NZD/USD ended last week a touch soft and remains on the backside of the daily trend which leaves the outlook somewhat bearish for the week ahead, although there are prospects of a test of the highs, so all is to play for an open playing field. NZD/USD was losing some 0.15% by the close and fell from a high of 0.6415 to a low of 0.6335.
''In the context of the past few weeks, ranges were confined and some catalyst (NZ Consumer Price Index next week?) is likely needed to see a major breakout,'' analysts at ANZ Bank said in a note to start the week.
''Local markets have swung back to pricing broadly even odds of either a 50bp or 75bp Reserve Bank of New Zealand hike next month; that leaves near-term risks more balanced,'' the analysts argued.
For the week ahead, the analysts say the focus is on REINZ house prices. ''If they are soft, that might feed the “shock value” thesis and keep downward pressure on local rate-hike expectations, and by extension, the Kiwi.''
NZD/USD technical analysis
While being on the backside of the daily bullish impulse and trend, there are still prospects of a move into the trendline resistance. This could act as the final push before a major bearish breakout:
Zoomed in further...
The W-formation is bullish and the fact that the price broke the monthly lows, breakout traders were trapped and the upside towards 0.6480 is a probable scenario for the days ahead to meet prior highs and a -61.8 ratio.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.