Forex: NZD/USD rockets ahead to 0.8169/70 (Barcelona) - The NZD/USD is advancing with force during European trading Monday morning, as the cross has netted a steadfast advance of +0.45% at the time of writing, Following a dip down towards 0.8045 Friday (session low), the pair has rallied nicely, and is negotiating the region of 0.8169/70.

According to the analyst team, “The NZD/USD returned above the 0.8150, though at the same time continues to trade below the linear regression indicators and accordingly we will stay aside. Prolonged stability below the 0.8100 handle is essential to support the downside move, however we cannot favor the upside move as the pair is below the linear regression indicators and the ascending support provided on the hourly charts.”

After storming above calculated resistance at 0.8135, the NZD/USD is slated to encounter additional means of correction at 0.8185 onto 0.8220 and 0.8255. On the downside, a retreat below the key 0.8100 barrier will activate supportive measures at 0.8080 and 0.8040, states the analyst team.

Despite the recent gains however, “Weighing on the NZD are the NZ economy’s soft patch in Q3, the US fiscal cliff, and Greece, which has been to a lesser extent, moderated partly by China’s optimistic recovery – as such, we expect the NZD/USD to gravitate towards 0.8050 this week.” writes the Westpac Strategy Team.