- Upside in NZD/USD gains traction in the Asian hours as a rebound in the oil prices overnight and broadly weaker US dollar support.
- The pair broke major trendline resistance at 0.6870 to extend gains upto 0.6887.
- Upside has however stalled at 23.6% Fib of 0.7053 to 0.6835 fall, further upside only on break above.
- Technicals on intra-day charts are biased higher. Break above 0.6887 will take the pair to next resistance at 0.69 and the 0.6918 (38.2% Fib of 0.7053 to 0.6835 fall).
- Markets now await the crucial policy decision from the Fed as well as the RBNZ later this week for next direction in the pair.
- On the data front we have the durable goods data from the US which will be published later today, followed by NZ trade balance data due tomorrow.
- Ahead of the Reserve Bank of New Zealand policy meeting, due on April 27th at 21 GMT, the New Zealand Institute of Economic Research (NZIER) Monetary Policy “Shadow Board” recommends the RBNZ to hold rates unchanged this meeting.
- Any surprise otherwise from the RBNZ could weigh heavily on the Kiwi.
Recommendation: Good to buy dips around 0.6875/80, SL: 0.6850, TP: 0.69/0.6920
The material has been provided by InstaForex Company – www.instaforex.com