NZD/USD is correcting up
Last week NZD/USD opened with a gap down below the 200-day MA ($0.8280) and lost more than 200 pips to $0.8060. This level represents an important support (50% Fibo of the advance from June 2012 low).
Today the pair has opened with a gap up and is now testing the levels above the 100-week MA at $0.8147.
Bank of America Merrill Lynch: NZD/USD risks a break of $0.8060, through which opens a way to $0.7840 (congestion since 2011). Yet, the trend of kiwi’s weakness is extremely stretched and at increasing risk of a snap back. Much will depend on US (especially) and New Zealand’s data this week.
Resistance: $0.8160, $0.8200/10 and $0.8280.
Support: $0.8060, $0.8000 and ultimately $0.7920.
Chart. H4 NZD/USD