14 Nov 2013
NZD/USD spikes to 0.8350, offers contain buying euphoria
FXstreet.com (Barcelona) - What a difference a day can make. NZD/USD represents that radical shift in sentiment quite accurately, going from a possible downside extension of a H&S daily pattern below 0.82 to test 0.8350 at present.
The diverging stance by the RBNZ and Fed is probably the main catalyst fueling the current rally, with shorts from last week probable being caught on the back-foot coupled with a liquidity void between 0.8280 and 0.8350.
Technically speaking, while a major technical breakout won't occur until 0.8420 resistance is cleared, the abrupt change in direction hints that any dips will find plenty of buying interest to keep adding longs short term. Areas to watch are 0.8290/0.83 - intraday level - followed by 0.8270 - and 0.8250. On the upside, break through 0.8355/60 expose 0.84 ahead of 0.8420.
The diverging stance by the RBNZ and Fed is probably the main catalyst fueling the current rally, with shorts from last week probable being caught on the back-foot coupled with a liquidity void between 0.8280 and 0.8350.
Technically speaking, while a major technical breakout won't occur until 0.8420 resistance is cleared, the abrupt change in direction hints that any dips will find plenty of buying interest to keep adding longs short term. Areas to watch are 0.8290/0.83 - intraday level - followed by 0.8270 - and 0.8250. On the upside, break through 0.8355/60 expose 0.84 ahead of 0.8420.