Forex Strategy - NZD/USD Open To Gains With Reversal Signal Lacking
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- NZD/USD Technical Strategy: Longs preferred
- Break above 0.8500 opens the NZD/USD to further gains
- Absence of bearish reversal pattern leaves upside preferred
As noted in yesterday’s candlesticks report, the RBNZ rate decision offered a critical piece of event risk for the NZD/USD. In addition to the widely-anticipated rate hike, an upbeat economic outlook and a firm commitment to further cash rate increases from the Reserve Bankhelped the Kiwi break the 0.8500 mark.
A bearish reversal signal is lacking on both the four hour and daily charts, which may leave the New Zealand Dollar to climb higher. Some selling pressure near the April 2013 high at 0.8578 is slowing the currency’s advance in Asian trading. However a break to the upside would favour continued gains towards the 0.8635 mark.
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4 Hour Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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