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NZD/USD consolidates +300 pips wins; at 0.8370 zone, 23.6% Fibo level

FXstreet.com (Chicago) - NZD/USD faces back up after a short-lived retracement from session peaks. Ahead of Tokyo’s opening, +300 pips wins continue being consolidated around 4-month highs.

Combination of factors


A weaker greenback on Fed’s decision and FOMC economic projections combined with a stronger than expected NZ GDP data at 2.5% vs. estimates at 2.1% led the pair to 4-month peaks with a momentary spike above the 0.8430 zone. Ahead of visitors arrivals data in NZ and after light bearish pressure on the pair, the kiwi consolidates 300 pips gained so far this week.

NZD/USD Technical Levels

Price action reveals the extension of an upward trendline (since last August 30th). The pair retraced from session highs at 0.8438 but found grounds around 0.8350 (38.2% Fibonacci level from earlier peaks) and has advanced 20 pips after the closing of Wall Street. Offered at 0.8374 (23.6% Fibonacci level), the pair oscillates between supports aligned at 0.8352 (May 1st lows), 0.83 (May 15th highs) ahead of 0.8267 (May 24th highs) and resistances set at 0.8383 (April 15th lows), 0.8430 (session highs) followed by 0.8473 (May 10th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and remains above the EMA20.

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USD/JPY, having had offers come in down to 99.20, has started to build a path towards the highs again, currently 99.46.
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