NZD/USD continues to set up an upwards trend The NZD/USD is heading steadily upwards, as the “kiwi” continues to outperform across the board, mainly due to the hedge funds buying the NZD/JPY cross with leveraged money to take advantage of the “carry trade”, as well as on market optimism. NZD/USD continues to build up its yesterday’s gains; in run to catch up with the “Aussie” The NZD/USD is strongly boosted since the early opening Asian trading session, continuing to build up its Monday gains, where it was nominated by far the best performing currency. Traders should think upon a couple of reasons that continue to boost the cross performance; first of all the “kiwi” is boosted also on Tuesday as it finally found solid support on market optimism that a deal in Washington is closer than ever before; secondly the cross NZD/JPY continues to be vastly in favor of leveraged money of hedge funds due to the carry trade; and last but not least after today’s rally of the “Aussie” on strong data, the “kiwi” is trying to speed up its pace to catch up with its Antipodean cousin. Technical Analysis on NZD/USD Traders should be aware of the fact that the “kiwi” is highly correlated again with its antipodean counterpart, the “Aussie”, therefore it could be a great idea to look simultaneously at both pairs when trading one of them. At the time of writing the pair is trading at 0.8386, up 0.37%. Ahead, the area as of 0.8402 remains the initial topside resistance, with the support being held at the 19th September’s low of 0.8327. Our personal aspect of view is that the “kiwi” will manage finally to retest its highs as of 0.8445, but to achieve this it should firstly overcome the psychological barrier as of 0.8400 (also the upper 21-day Bollinger Band), but mostly the 76.4% Fibonacci retracement as of 0.8676 – 0.7676 area.
Posted on: Tue, 15 Oct 2013 05:52:16 +0000
Trending Topics
© 2015