NZD/USD climbs Wednesday on Dollar dump, holding steady at the top

NZD/USD catches a lift on US inflation, US Dollar dump.
Small pullback on thin volume heading into Europe markets.

Joshua Gibson FXStreet

The Kiwi is off its recent two-week high of 0.7395, trading near 0.7373 ahead of the European markets.

NZD/USD has closed higher for four straight trading days, accelerating gains on Wednesday following the US inflation figures that sent the Greenback tumbling. The pair has erased the decline that started in early February, and is set to begin trading back into new highs if confidence holds, but the Kiwi got another fundamental bump today after Fitch affirmed New Zealand's AA rating.

NZD/USD Technicals

The pair is still trading close to yesterday's high of 0.7379, with intraday support/resistance priced in at 0.7335 and 0.7395 respectively; on H4 charts the Kiwi is approaching a heavy resistance zone from 0.7405 to 0.7435, and a continuation of bulish momentum will need to break this level decisively. Daily candles show the 34 EMA still above the 200-day SMA and gaining ground, while a bullish trend will have to contend with long-term resistance at 0.7557.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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