NZDUSD Poised For More Gains11 February, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
NZDUSD Poised For More Gains, Are You Buying?
- New Zealand Dollar enjoyed a decent rally against the US Dollar, and currently challenging the 0.6710-40 resistance area.
- There is a support trend line formed on the 4-hours chart, which may play a major role for buyers and sellers in the short term.
- Today, the US Initial Jobless Claims will be released by the US Department of Labor, which is forecasted to decrease from 285K to 281K.
- Earlier today, the New Zealand Business NZ PMI released by the Business NZ came in at 57.9 in January 2016, up from the last reading of 56.7.
NZDUSD Technical Analysis
The NZDUSD pair showed a lot of positive signs this week, as it climbed higher and formed a bullish pattern. There is a support trend line formed on the 4-hours chart of the NZDUSD pair, which is acting as a barrier for sellers and buy zone for buyers.
The NZDUSD pair is also comfortably above the 100 and 200 simple moving averages on the 4-hours chart, which is a sign that buyers are here to stay.
On the upside, buyers need to watch for the 0.7700-50 area, as it acted as a resistance many times, and only a daily close above it could take the pair higher in the near term. On the downside, the 0.6620-00 can be seen as a crucial support area, followed by 200 SMA (H4).
US Initial Jobless Claims
Today, there are not many economic releases in the US. A low risk event is lined up, as the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The forecast is slated for a minor decrease from the last reading of 285K to 281K. Any major deviation may call for swing moves in the US Dollar.
New Zealand Business NZ PMI
Earlier during the Asian session, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ. The outcome was positive, as there was an increase from the last reading of 56.7 to 57.9 in January 2016.
The NZDUSD pair may attempt to move higher from the current levels, and any correction from here might find buyers on the downside.