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21 Oct 2013
NZD/USD amidst a broad uptrend consolidation mode
FXstreet.com (Athens) – The NZD/USD is trading under slight pressure since the early European trading session, but the “kiwi” seems to be mostly in a consolidation uptrend momentum, inspired by the increased risk-appetite.
The NZD/USD started the week hovering at the upper level, since the combination of a dovish Fed, dramatically falling volatility and stronger risk appetite, boosted the carry-trade “glitter” of the “kiwi”. While the boosted demand for the cross was well presented in the kick off of the Wellington opening trading session, the pair found itself under pressure in Tokyo trading session. Since then, the NZD/USD is well dragged below the 0.8500 handle, but the general backdrop amidst a week of vast US data releases, is that the kiwi is under an uptrend consolidation mode. Last but not least, the solid New Zealand net migration data released earlier this morning, revealed that it very probable to have another rise in home prices, thus more speculation on when the RBNZ will start tightening.
Technical Outlook on the NZD/USD
At the time of writing the pair is trading at 0.8470, down 0.34%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.8400, 0.8376, 0.8355, and resistance at 0.8560, 0.8582 and 0.8603, respectively. Last but not least apart from the above, traders should always bear in mind that the kiwi tracks the trend behavior of its Antipodean cousin, the “Aussie” therefore they should pay attention simultaneously at both of them. Traders should bear in mind both the support as of the 16th June low (0.8375) as well as the resistance as of the 0.8525 post 6 May high. Finally, the high as of 2013 at 86.76, is also in the vicinity in a longer term approach.
The NZD/USD started the week hovering at the upper level, since the combination of a dovish Fed, dramatically falling volatility and stronger risk appetite, boosted the carry-trade “glitter” of the “kiwi”. While the boosted demand for the cross was well presented in the kick off of the Wellington opening trading session, the pair found itself under pressure in Tokyo trading session. Since then, the NZD/USD is well dragged below the 0.8500 handle, but the general backdrop amidst a week of vast US data releases, is that the kiwi is under an uptrend consolidation mode. Last but not least, the solid New Zealand net migration data released earlier this morning, revealed that it very probable to have another rise in home prices, thus more speculation on when the RBNZ will start tightening.
Technical Outlook on the NZD/USD
At the time of writing the pair is trading at 0.8470, down 0.34%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.8400, 0.8376, 0.8355, and resistance at 0.8560, 0.8582 and 0.8603, respectively. Last but not least apart from the above, traders should always bear in mind that the kiwi tracks the trend behavior of its Antipodean cousin, the “Aussie” therefore they should pay attention simultaneously at both of them. Traders should bear in mind both the support as of the 16th June low (0.8375) as well as the resistance as of the 0.8525 post 6 May high. Finally, the high as of 2013 at 86.76, is also in the vicinity in a longer term approach.