NZD/USD Key Support at 0.7302

The pair retraced some of yesterday’s gains, as risk appetite weakened slightly, after comments from Fitch Ratings stated concerns over government finances.

NZD/USD, topped out at 0.7458 before retracing to 0.7378 (61.8% Fib). The pair has rebounded from this level and currently trades near its pivot point at 0.7420.

Bias remains bullish on the back of Fonterra’s positive news yesterday, but caution is warranted as markets may see further reversal before renewed buying interest resumes. German Zew sentiment just printed below estimates which could add the case for a correction. However, gains are still expected.

Above the current 0.7420 level, the pair finds initial resistance at 0.7460, followed by 0.7500 and 0.7569.

Below current levels, NZD/USD will encounter initial support at 0.7380, followed by 0.7302, 0.7256 and 0.7196.

TREND

Near Term: Neutral
Medium Term: Bullish
Long Term: Bullish

Trading levels in play:

Mixed bias. There are no solid trade recommendations at the moment for intraday moves. However, look for possible Buy setups at 0.7312 and 0.7256

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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