19 Jul 2013
NZD/USD breaks resistance 0.7940
FXstreet.com (London) - NZD/USD has moved further to the upside and pierced the 0.7940 resistance zone.
NZD/USD has a high of 0.8131 for the month of June where the pair resumed the downside to reach below 0.7700 handle. July has been a month so far that has seen the pair drift high towards the 0.800 handle. The condition sin New Zealand outplay the disinflationary in other economies and the RBNZ will have a tuff call on interest rates as the currency continues to a appreciate. NZ short-term rates are already very elevated with a 1-week deposit ask rate at 3.21%. “With rising odds of a stronger RBNZ response, we favour taking advantage of this temporary pressure in rates. A side effect of this easing should be to see NZD/USD squeeze higher” – Sebastien Galy – Societe Generale.
NZD/USD levels
The pair has key resistance at 0.7967 and 50d ma. 0.7813 200d ma, 0.7947 50d ma. 0.8234 200d ma. RSI 9 58.59. Support 0.7730, 0.7794, 0.7820, 0.7840. Resistance 0.7940, 0.7970, 0.7988, 0.8030.
NZD/USD has a high of 0.8131 for the month of June where the pair resumed the downside to reach below 0.7700 handle. July has been a month so far that has seen the pair drift high towards the 0.800 handle. The condition sin New Zealand outplay the disinflationary in other economies and the RBNZ will have a tuff call on interest rates as the currency continues to a appreciate. NZ short-term rates are already very elevated with a 1-week deposit ask rate at 3.21%. “With rising odds of a stronger RBNZ response, we favour taking advantage of this temporary pressure in rates. A side effect of this easing should be to see NZD/USD squeeze higher” – Sebastien Galy – Societe Generale.
NZD/USD levels
The pair has key resistance at 0.7967 and 50d ma. 0.7813 200d ma, 0.7947 50d ma. 0.8234 200d ma. RSI 9 58.59. Support 0.7730, 0.7794, 0.7820, 0.7840. Resistance 0.7940, 0.7970, 0.7988, 0.8030.