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


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