NZD/USD: technical update
NZD/USD has been trading in the ascending channel since the end of June. As can be seen from the daily chart, the pair has reached the resistance line of the longer-term ascending channel, existing since April. On Tuesday the pair is trading around $0.7855.
In our view, a break above $0.7815 (23.6% Fibo) would confirm the upward reversal and open the way to $0.7970 (bottom of the daily bearish Ichimoku). We would expect this level to cap the upside.
If the $0.7915 area proves to be resistive, we will sell the kiwi on a break below $0.7680 with a medium-term target of $0.7450.
Analysts at BNZ remain bearish on the pair, given the trend for a higher USD. They expect NZD/USD to end the year at $0.7800.
Chart. Daily NZD/USD