By: DailyForex.com
The NZD/USD climbed 440 points in September, completely swallowing Augusts entire price ranage and smashing the 6 month high from April. A weaker greenback and better than anticipated results from the small island nations economy helped boost the pair higher. This means that there is a high probability that the currency is going to continue to strengthen and head for the 12 month high set in Febraury at 0.8470 before possibly taking on the all time high set in August 2011 at 0.8842. The Kiwi is propped up by strong support at 0.8000 after 2 weeks of range between 0.8182 and 0.8355 which produced double pseudo pin bars in the last 2 weeks and retesting a broken descending trend-line at 0.8150. Having closed above this descending trend line as well as retracing twice to the 38.2% retracement level twice in the latter half of September, the pair can defiantely be consindered big picture bullish. Granted there may be some bearish pullbacks, but over all its a very bullish currency at the moment. Look for Support this week at 0.8262, 0.8229, 0.82005 & 0.8188 with resistance above at 0.8300, 0.8342, 0.8373 and 0.8388 to impeed progress. A word of caution this week as there are a plethora of announcements on both the EURO ans well as the USD but few of any imact on the Kiwi itself. If the greenback gets a much needed boost we could see this pair pull back as it has been doing since the Asian opening today, but a close above 0.8360 should see the pair climb steadily.
Happy Trading!