I have been writing about the New Zealand Dollar lately and I think it has bottomed, turned and will continue to head higher. I think a first initial major target is the January 2017 high right above 73.50.
Up until now almost all of the euro crosses have been stuck in strong bearish trends – especially the commodity crosses. However in recent weeks we have seen some interesting bullish patterns develop on the likes of the EUR/AUD, EUR/NZD and EUR/CAD. Whether or not these patterns develop into anything significant remains to be seen. But for the time being they all point to a potential bounce of some sort.
It’s been another relatively quiet start to trading on Thursday, very much in keeping with what we’ve seen throughout the week so far with the absence of major economic data or events offering little direction for traders.
New Zealand/U.S. dollar (NZD/USD) currency pair fell with five waves from 0.7369 in the last three weeks, labeled as extended black Wave 3 so more weakness is expected to occur after a fourth wave bounce.
The dollar remains the currency market’s standout performer for the second straight day, gaining value against each of its major rivals after this morning’s as-expected New Home Sales report. NZD/USD saw a bullish “golden cross” of the 50-day moving average above the 200-day moving average, though it’s worth noting that the 200-day MA continues to trend lower, potentially weakening the bullish implications of the signal.
During the last week, we’ve written about the early signs of a potential bottom forming in AUD/USD, but we haven’t taken a close look at the Aussie’s antipodean brother NZD/USD, even though the kiwi appears to be a few days ahead.