Since mid February the NZD/USD pair entered into
bearish channel, which was clearly broken today. The Kiwi is currently trading
at 0.7293 having gained 0.92% for the day.
The greenback’s weakness was
initiated last Thursday with Trump ‘s proposal on iron and
aluminium tariffs, which was accepted as a trade war.
Technically speaking the short term outlook remains
neutral to bullish. On the four hour time frame the price is developing well above
its bullish 20-day SMA, while the 100-day and 200-day SMAs are staying flat
around respectively 0.7300and 0.7308. RSI is nearing the overbought area bust
has eased just below its 70 level. Stochastic is showing strong upward momentum
and crossed its 80 level.
First resistance is provided by the 200-day SMA at 0.7308 and next comes at
0.7340. The downside is supported by 0.7280 (resistance turned into support) followed
by the daily low at 0.7242.
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