NZD/USD moves upwards with or without Syria

FXstreet.com (Athens) -The NZD/USD is trading upwards, as despite sounding bizarre, recent historical experience suggests that positioning for NZD outperformance makes sense in this risky environment.

Traders might take a look upon at the correlation of the NZD/USD with risky environments

The NZD/USD is trading on the upper level since the opening of the Asian’s trading session on Friday. While many traders might find a bit weird the fact that while war in Syria seems imminent, TD Securites analysts suggest that ‘The idea that an imminent attack on Syria could be good for a ‘risk currency’ such as the NZD may sound like a contradiction, but recent historical experience suggests that positioning for NZD outperformance makes sense in this environment’. What’s more, NZD building permits fell by –0.8% in Jul (prior –4.3%) ,but there is still a trend surge in construction. Last but not least, excluding apartments, approvals rose by 3.1%.

Technical outlook on NZD/USD

At the time of writing, the pair is trading at 0.7781 area, up 0.17%, The FXstreet.com Trend Index shows the pair to be strongly bullish. Daily pivot point support can be found at 0.7733, 0.7713, 0.7694 and resistance at 0.7831, 0.7850 and 0.7870, respectively