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The FxPro Analyst Team

Could NZD/USD Hold Above the 0.7100 Psychological Level?

NZD/USD has seen a noticeable 2.4% gain since May 22nd helped by outperforming New Zealand economic data.

On the daily chart Kiwi bulls have successfully breached the major downtrend line resistance on May 22. Since then Kiwi has been trading above the downside 10 SMA support.

The bulls further broke the next significant psychological resistance level at 0.7000 on May 23 with strong bullish momentum.

This morning NZD/USD broke the next significant psychological resistance level at 0.7100, touching a 3-month high of 0.7120, helped by the weakening of USD.

If the bulls can successfully hold above the level at 0.7100, we will likely see Kiwi continuing edging up.
Conversely, if the bulls fail to hold the level, we will likely see a correction.

The resistance level is at 0.7120 followed by 0.7150.
The support line is at 0.7100 followed by 0.7080 and 0.7050.

US pending home sales for April will be released at 15:00 BST this afternoon. Be aware that it will likely affect NZD/USD.

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