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Home » Daily Technical Reports » NZD/USD Today Technical Report 18/04/2016

NZD/USD Today Technical Report 18/04/2016

NZD/USD traded higher during the Asian morning Monday after New Zealand’s CPI rate for Q1 exceeded expectations on a quarterly basis. The rate is back above the 0.6880 (S1) barrier and I would expect it to continue north and perhaps challenge the 0.6960 (R1) resistance zone. A move above that line could aim for the round figure of 0.7000 (R2). Our momentum studies detect upside speed and support that the pair is poised to continue higher for a while. The RSI rebounded from near its 50 line, while the MACD, already positive, has bottomed and crossed above its trigger line. Zooming out to the daily chart, I see that the rate is trading above the upper bound of the sideways range the pair had been trading from the beginnings of October. This keeps the medium-term outlook cautiously positive, but I would prefer to see a decisive close above 0.7000 (R2) before getting confident on larger advances.

NZD 18

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