By: Colin Jessup
The Kiwi aka NZD/USD has been trading in an increasingly tighter range of 200 +/- pips for over 5 weeks now. Today the New Zealand Dollar gained 125 pips on the Greenback and broke out of this range closing well above the Weekly R1 and coming within 10 pips of the Weekly R2 all in one daily candle. Now that the upper descending trend-line has been broken with strength, expect a pullback, possibly to the 0.8230 level before advancing further. It is possible however, that the pair may simply consolidate in the final hours of this week's trading and not move substantially until the markets re-open next week. If price does continue its Bullish advance, Resistance will be found at 0.8313 and then the Daily R1 which sits currently at 0.8357. Support for the pair is at 0.8290, 0.8268 and 0.8220 sits down below. While there are not Asian Market fundamentals outstanding, there are 3 high impact events for the Greenback on Friday including CORE CPI, U of M Consumer Sentiment, and Bernanke is going to be dispensing his trademarked brand of verbal jargon as well mid morning in New York. As always use caution if you are trading around these events.
Happy Trading
