NZD/USD surges through 0.7100 handle

Haresh Menghani FXStreet

The NZD/USD pair was seen building on Wednesday's strong up-move and has now surged past 0.7100 handle to hit a fresh 4-week high.

Currently trading around 0.7110 region, testing session peak, a broad based US Dollar slump, in wake of Wednesday's disappointment from Trump's first news conference, negated dismal reading on ANZ commodity price index for December (+0.7% as compared to previous month's 3.2%) and lifted the pair to the highest level since mid-December.

Moreover, possibilities of some stops being triggered, on a sustained strength above 0.7080-90 confluence resistance (50-day & 200-day SMAs), also seems to have collaborated to the pair's strong up-move in the past few hours.

However, with an occurrence of a 'Death-Cross' on daily chart, with 50-day SMA crossing below the very important 200-day SMA, it would prudent to wait for a follow through action to see if the break-out is for real or is just a stop-run.

Technical levels to watch

Immediate upside resistance is pegged near 0.7135 above which the pair seems all set to head towards 100-day SMA resistance near 0.7155 region ahead of its next major hurdle near 0.7200 round figure mark. On the downside, 0.7090-80 resistance break area now seems to protect immediate downside, which if broken might drag the pair back towards 0.7050-45 horizontal area, en-route 0.7020 support.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.6968

29% Bullish
57% Bearish
14% Sideways

Bias Bearish

1 Month

Avg Forecast 0.6927

27% Bullish
55% Bearish
18% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6799

7% Bullish
60% Bearish
33% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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