By: Colin Jessup
The NZD/USD is appears to be continuing its Bullish run on the charts, closing higher than open on the last trading day of last week after testing a Bullish trend line which started in mid December. Last Friday's candle was a significant indication that the lower prices are being rejected by traders and could signal that strength is building to test the 0.8000 level before long. Immediately above they will need to push through 0.7980 and 0.8050. Noteworthy is that this zone caused substantial problems for the Kiwi from Mid October through November before falling to 0.7400.
Prices are Bullish at time of writing, with a few hours left to go in the Sydney session having come no where near the key support zone of 0.7900 yet. This zone will be key for the continuation of the Bulls run, and any break below it may mean a Bearish push for a minor zone at 0.7800 and then a stronger support zone at around 0.7765.
The Kiwi is weakened by the ever worsening EU crisis and less than stellar numbers coming out of their small island nation. This pair has seen 5 of the last 8 weekly candles closing higher than they opened, with the last 4 all being Bullish.
I am Bullish in my outlook for this pair and expect the 0.8200 level to be reached before long...
Happy Trading!
