The New Zealand dollar traded lower during the last couple of weeks against the US dollar, and recently traded as low as 0.8310. However, the NZDUSD pair has somehow managed to gain bids and is trading a touch higher Intraday. There was no economic release in the New Zealand, but the ANZ Business confidence will be released during the next Asian session, which might affect the pair in the short term. Moreover, the New Zealand building consents data will also be released by the Statistics New Zealand.
There was a major bearish trend line on the hourly chart for the NZDUSD pair, which was breached recently. The most important point is that the pair has managed to close above the 100 hourly moving average. Currently, the pair is struggling to break the 200 moving average, which might cause a pullback in the pair. If the pair moves a bit lower from the current levels, then it might find support around the broken trend line and 100 moving average confluence area. In that situation, it is possible that the pair might climb towards the 50% fib retracement level of the last fall from the 0.8514 high to 0.8310 low. There is also a chance that the pair might continue trading higher from the current levels, and challenge the 50% fib level.
If the pair fails to move higher, and closes back below the 100 hourly moving average then a run towards the last low of 0.8310 could be on the cards. It would be interesting to see how the pair behaves around the mentioned level if reached.
Overall, buying dips with a small risk might be considered until the pair is trading above the 100 hourly moving average.
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Posted By Simon Ji of IKOFX
