NZDUSD Confirms Bullish Reversal As Bulls Gain Strength

FXOpen

The New Zealand Dollar (NZD) extended upside movement against the US Dollar (USD) yesterday, increasing the price of NZDUSD to more than 0.6800 and confirming the bullish reversal following some key economic releases. The technical bias remains bullish because of a Higher Low in the recent downside wave on four-hour timeframe.

Technical Analysis

As of this writing, the pair is being traded near 0.6778. A support may be noted near 0.6746-0.6750, the confluence of psychological number as well as swing low of the recent downside move ahead of 0.6716, the low of 10th May as demonstrated in the following chart.

NZDUSD Confirms Bullish Reversal As Bulls Gain Strength

On the upside, the pair is likely to face a hurdle near 0.6847, the swing high of the recent upside rally ahead of 0.6952 which is a major horizontal resistance level. The technical bias will remain bullish as long as the 0.6716 support area is intact.

US Housing Data

U.S. housing starts rose more than expected in April as builders ramped up the construction of single and multi-family homes, supporting views that the economy was regaining steam early in the second quarter.

Groundbreaking increased 6.6 percent to a seasonally adjusted annual pace of 1.17 million units, the Commerce Department said on Tuesday. March’s starts were revised up slightly to a 1.10 million-unit rate from the previously reported 1.09 million-unit pace. Economists polled by Reuters had forecast housing starts rising to a 1.13 million-unit pace last month. The government revised seasonally adjusted housing starts data from January 2014 through March this year.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair on a downside move could be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.