By: Colin Jessup
The NZD/USD or Kiwi as most traders know it is retesting the support level at 0.8350 in the hour leading up to the London open. The pair has been trading in a roughly 180 pip range since the beginning of February, and up until now has been mostly been hitting 0.8350 as resistance. Now this level has become support and could be a tough support level for the bears to breach after such a long fight to climb above it. The weekly chart is also hinting at possible higher prices by the formation on a bullish engulfing candle completely overtaking the previous week's bearish candle. The 62 EMA has a strong upward angle to it suggesting that price would have to pull back to roughly the 0.8052 in order to be considered bearish in the long term. Now, Resistance is seen 0.84275 and again at the 6 month high of 0.8571...beyond that, there is little in the form of resistance until we reach the 0.8800 level. To the downside, the bears will indeed need to break 0.8350 with 0.8200 being the next key support level. I am bullish on this pair above 0.8300.
Happy Trading!