NZD/USD – New Zealand Dollar Eyeing Break above 0.7460 Vs US Dollar25 July, 2017 by Aayush Jindal in Market Analysis
- The New Zealand Dollar gained heavy bids recently and moved above 0.7400 against the US Dollar.
- There was a break above a major contracting triangle pattern with resistance near 0.7360 on the 4-hours chart.
- Today in the Euro Zone, the German business sentiment index for July 2017 posted an increase from the last revised reading of 115.2 to 116.0.
- Later today, the US S&P/Case-Shiller Home Price Indices for May 2017 will be released, which is forecasted to increase by 5.8% (YoY).
NZDUSD Technical Analysis
The New Zealand dollar was all bullish recently as it moved above 0.7400 against the US Dollar. The NZD/USD pair remains in a bullish trend and likely to continue higher.
To initiate the uptrend, there was a break above a major contracting triangle pattern with resistance near 0.7360 on the 4-hours chart. The pair traded as high as 0.7458 and then started a correction.
There was almost a test of the 50% Fib retracement level of the last wave from the 0.7333 low to 0.7458 high. Buyers defended losses below 0.7400 and pushed the pair back up. The last two candles on the 4-hours were bullish, and pointing a test of the 0.7460 level.
There are even chances of a break above the 0.7460 level if buyers remain in control. The H4 RSI for NZD/USD is currently near 62 and heading higher, which is a positive sign.
Germany’s Business Sentiment Index
Today in the Euro Zone, the German business sentiment index for July 2017 was released by the CESifo Group. The market was positioned for a decline from the last reading of 115.1 to 114.9.
However, the result was better, as there was a rise to 116.0. The last reading was revised up from 115.1 to 115.2. The German Current assessment index also posted an increase from the last revised reading of 124.2 to 125.4.
The report added that:
The ifo Business Climate for Saxony hit a new all-time record high in July. With sentiment hovering near record high levels for the past two months, the index rose to 115.9 points in June from 112.9 points last month. The upward trend in assessments of the current business situation seen in recent months continued in June.
Overall, the market sentiment was boosted for the Euro, and EUR/USD pair remained above the 1.1640 support area.