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22 Mar 2016
NZD/USD looking for a breakout above 0.6900 or below 0.6720
NZD/USD has been in a narrow range between 0.6750 and 0.6770 overnight and is handed over to Tokyo at the better half of that bracket in a consolidation phase of the recent recovery from 0.6580 lows scored on the 16th March.
As Imre Speizer, analyst at Westpac recently noted, "NZD/USD last week tried to break above 0.6875-0.6900, an area which was previously unbreachable in Oct and Dec," the price has run out of steam and it could be a time of pause while markets this week have some time to digest and ponder on the recent action and rhetoric from Central Banks with a surprise cut from the RBNZ and surprise dovishness from last week's FOMC, "We suspect a brief pause from here, which could see it slip to 0.6700, before another attempt higher is attempted," explained Imre Speizer.
NZD/USD levels
NZD/USD's upside targets a break above 0.6900 and Imre Speizer explained that such a move would be very bullish and argue for a multi-cent rally from there. The first hurdle would be the 50 sma on the 1hr sticks at 0.6788 for a cent higher to exceed recent highs of 0.6871. To the downside, the 200 sma on the same 1hr time frame is located just below 0.6720 at 0.6714 and a break there could lead to a quick drop back to the 0.66 handle.
As Imre Speizer, analyst at Westpac recently noted, "NZD/USD last week tried to break above 0.6875-0.6900, an area which was previously unbreachable in Oct and Dec," the price has run out of steam and it could be a time of pause while markets this week have some time to digest and ponder on the recent action and rhetoric from Central Banks with a surprise cut from the RBNZ and surprise dovishness from last week's FOMC, "We suspect a brief pause from here, which could see it slip to 0.6700, before another attempt higher is attempted," explained Imre Speizer.
NZD/USD levels
NZD/USD's upside targets a break above 0.6900 and Imre Speizer explained that such a move would be very bullish and argue for a multi-cent rally from there. The first hurdle would be the 50 sma on the 1hr sticks at 0.6788 for a cent higher to exceed recent highs of 0.6871. To the downside, the 200 sma on the same 1hr time frame is located just below 0.6720 at 0.6714 and a break there could lead to a quick drop back to the 0.66 handle.