NZD/USD: through key resistance levels, what next?

By FXStreet NZD/USD has been the top performer, rallying from 0.6662 lows on the 27th March and reaching as high as 0.6964.

NZD/USD performed strongly in the London morning, without a known catalyst and rallied to the highest level since June 17th 2015, reaching the aforementioned 0.6965, but settled down in NY to trade within a 50 pip range in the lower end of the 0.69 handle. In the US, the main event that supported the dollar was the ADP report as a positive prelude to the nonfarm payrolls on Friday.

We also has Chicago’s Fed president Evans speak on two occasions. First he was on CNBC and then again in a prepared speech to the Forecasters Club in NY suggesting that the risks are tilted towards the downside, suggesting a “very shallow path” for interest rates was likely in the next 3 years, exposing the downside in the greenback again.

NZD/USD levels

Now that we have breached the daily double top between Oct 2015 business and late December 2015 business, the undertone remain bullish for the bird, despite being fundamentally too high for the RBNZ and consolidating at the pivot currently.

The second factor underpinning the bullish bias is the …read more

Source:: FX Street