Sticks to gains above 0.5600 ahead of US NFP
The post Sticks to gains above 0. 5600 ahead of US NFP appeared com. The NZD/USD pair gains some positive traction on Thursday and recovers a part of the previous day’s heavy losses to the lowest level since April 9. Spot prices stick to intraday gains above the 0. 5600 mark through the early European session, though a sustained US Dollar (USD) buying might cap the upside ahead of the delayed release of the US Nonfarm Payrolls (NFP) report for September. From a technical perspective, the recent downfall witnessed over the past two months or so along two converging trend lines constitutes the formation of a bullish falling wedge on the daily chart. That said, the recent repeated failures to build on the move beyond the 50-day Simple Moving Average (SMA) and negative oscillators warrant some caution before positioning for any further near-term appreciating move for the NZD/USD pair. Meanwhile, any subsequent move up is more likely to confront a stiff barrier near the 0. 5665-0. 5670 region, representing the top boundary of the falling wedge. Some follow-through buying could trigger a short-covering rally and lift the NZD/USD pair to the 0. 5700 mark en route to the 50-day SMA pivotal resistance, currently pegged near the 0. 5765 region. A sustained move beyond the latter will confirm that spot prices have bottomed out. On the flip side, acceptance below the 0. 5600 round figure and a subsequent break through the falling wedge support, around the 0. 5570-0. 5565 region, will be seen as a fresh trigger for bearish traders. The NZD/USD pair might then accelerate the downfall towards testing levels below the 0. 5500 psychological mark, or a multi-year low touched in April, and prolong a nearly four-month-old downtrend. NZD/USD daily chart New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the.
