The New Zealand Dollar remained underpinned by last week’s data that showed country’s economic growth bettered expectations in the third quarter of 2017. The 29 December NZDUSD Technical Outlook gives more insight.
29 December, GKFX– The NZD/USD pair kept scaling higher for the seventh straight session and has now risen to 0.7100 handle, its highest level in over two-month.
• Bulls maintain dominant position near technically important 200-DMA.
• Persistent USD selling/recent slide in the US bond yields support the up-move.
• Headed for the third consecutive weekly gains; highest weekly close in 10-weeks.
The New Zealand Dollar remained underpinned by last week’s data that showed country’s economic growth bettered expectations in the third quarter of 2017. This coupled with persistent US Dollar selling bias remained supportive of the pair’s strong up-move over the past three weeks.
Meanwhile, the recent sharp slide in the US Treasury bond yields, triggered by Wednesday’s disappointing US consumer confidence data, provided an additional boost to higher-yielding currencies and further collaborated to the pair’s bullish momentum back to the very important 200-day SMA.
It would now be interesting to see if bulls are able to maintain their dominant position and lift the pair beyond a technically important barrier. Nevertheless, the pair still remains on track for its third consecutive week of gains and all set for its highest weekly close in 10-week.
In absence of any major market moving economic releases, the pair remains at the mercy of broader market sentiment around the greenback and the US bond yield dynamics.
29 December NZDUSD Technical Outlook
A follow-through buying interest has the potential to continue lifting the pair towards 0.7165-70 supply zone, above which the momentum could assist in reclaiming the 0.7200 handle.
On the flip side, 100-day SMA near the 0.7070 region now becomes an immediate support to defend, which if broken could prompt some additional profit-taking slide towards 0.7035 horizontal support en-route the key 0.70 psychological mark.
This article “29 December NZDUSD Technical Outlook ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.