NZDUSD - Time for the bird to take flight
The FOMC meet showed the Fed are in absolutely no rush to taper, and the USD has lost ground and should continue to do so in the near-term. Commodity currencies should remain in vogue, and as we see from the set-up, NZDUSD printed a bullish outside day, rejecting the move below the 5-day EMA.
A close below the 5-day EMA will suggest more choppy trade and confirm the change in stochastic momentum – however, should price build on the Fed induced reversal and we see a higher high, the risk is the bulls push the pair into 0.7300/50. A close above 0.7250 would elevate confidence in the position – and, we see, aside from a brief period in late February, supply has been ever present into this level on multiple occasions – so a close through here should be significant.
A close below the 5-day EMA will suggest more choppy trade and confirm the change in stochastic momentum – however, should price build on the Fed induced reversal and we see a higher high, the risk is the bulls push the pair into 0.7300/50. A close above 0.7250 would elevate confidence in the position – and, we see, aside from a brief period in late February, supply has been ever present into this level on multiple occasions – so a close through here should be significant.
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