- NZD/USD extends upside after a pause on Thursday, but upside seen capped by 50-DMA at 0.6836.
- Momentum studies point north, price action has entered daily cloud and cloud base (0.6804) now offers strong support.
- Resistance on the upside seen at 0.6836 (50-DMA), 0.6848 (May 9th & 12th highs), 0.6878 (Apr 11th & 25th high).
- US non-farm payrolls due later today and RBNZ’s meeting next week (which will be accompanied by a full Monetary Policy Statement) seen as major risk events.
- We see a possible 'Bearish Cypher' pattern on NZD/USD daily charts (http://www.econotimes.com/FxWirePro-Possible-Bearish-Cypher-on-NZD-USD-dailies-216191) which is progressing.
- Break above 50-DMA could accentuate upside, on the flipside, bullish invalidation below 21-DMA at 0.6770.
- US non-farm payrolls due later today and RBNZ’s meeting next week (which will be accompanied by a full Monetary Policy Statement) seen as major risk events.
- The market prices only slightly more than a 20% chance of a cut at the meeting.
The material has been provided by InstaForex Company – www.instaforex.com