Has the time arrived for KIWI to appreciate VS other currencies?
NZDUSD has already broken out fairly well out of its descending trendline and currently due to USD strength, it has fallen this week to around 70 cents. This fall offers a great opportunity to trade this pair LONG as the RISK TO REWARD RATIO is highly feasible
TECHNICAL ANALYSIS
1. PRICE BROKE OUT OF A STRONG RELIABLE DESCENDING TRENDLINE ON BOTH DAILY AND WEEKLY CHARTS
2. PRICE ALSO BROKE HIGHER HIGH IN THE PROCESS AND NOW THE NEXT RELEVANT TARGET IS SEEN AT ANOTHER HIGHER HIGH (0.73100)
3. ASCENDING TRENDLINE ACTING AS STRONG SUPPORT TOGETHER WITH MONTHLY CONCRETE SUPPORT AT 0.7000
FUNDAMENTAL ANALYSIS ON WHY NZDUSD WILL LIKELY RISE
1. The improving conditions follow the rollback of Covid restrictions across much of the Kiwi economy.
2. New Zealand’s performance of manufacturing index (BNZ) crossed the wires this morning at 54.3 for October. That is an increase from the upwardly revised September figure of 51.6.
3. The Reserve Bank of New Zealand has plenty of ammunition to continue down the path of hiking rates, unlike its cross-Tasman counterpart, the RBA. This gives the New Zealand Dollar a comparative advantage versus the Australian Dollar. NZD rate hike bets have increased in recent weeks while the currency’s performance has lagged against the Greenback. That opens the door for a break higher in NZD/USD on the next bout of USD weakness.
TO CONCLUDE
Based on both technical and fundamental analysis of the current market picture, we can expect NZD to appreciate against many currencies including the USD.
TECHNICAL ANALYSIS
1. PRICE BROKE OUT OF A STRONG RELIABLE DESCENDING TRENDLINE ON BOTH DAILY AND WEEKLY CHARTS
2. PRICE ALSO BROKE HIGHER HIGH IN THE PROCESS AND NOW THE NEXT RELEVANT TARGET IS SEEN AT ANOTHER HIGHER HIGH (0.73100)
3. ASCENDING TRENDLINE ACTING AS STRONG SUPPORT TOGETHER WITH MONTHLY CONCRETE SUPPORT AT 0.7000
FUNDAMENTAL ANALYSIS ON WHY NZDUSD WILL LIKELY RISE
1. The improving conditions follow the rollback of Covid restrictions across much of the Kiwi economy.
2. New Zealand’s performance of manufacturing index (BNZ) crossed the wires this morning at 54.3 for October. That is an increase from the upwardly revised September figure of 51.6.
3. The Reserve Bank of New Zealand has plenty of ammunition to continue down the path of hiking rates, unlike its cross-Tasman counterpart, the RBA. This gives the New Zealand Dollar a comparative advantage versus the Australian Dollar. NZD rate hike bets have increased in recent weeks while the currency’s performance has lagged against the Greenback. That opens the door for a break higher in NZD/USD on the next bout of USD weakness.
TO CONCLUDE
Based on both technical and fundamental analysis of the current market picture, we can expect NZD to appreciate against many currencies including the USD.
