The Kiwi has managed once again to drag the NZD/USD price higher, the pair has reached fresh new highs and could increase further as the US dollar index looks too heavy to stay higher, we had some volatility on this pair after the FED Chair Yellen’s testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, the greenback has decreased versus all its counterparts as the USDX has slipped lower. The US dollar is fighting hard to stay higher as the United States Existing Home Sales have increased from 5.43M to 5.53M in May, matching expectations, has reached the highest level since October 2015, but wasn’t able to inspire too much the USD. The United States currency remains sluggish on the short term, has lost ground versus all its counterparts, the NZD/USD has jumped above yesterday’s high, is challenging a strong static resistance right now.
The United States Crude Oil Inventories have remained steady at -0.9 million barrels in the last week, the economic indicator has come better compared to the -1.3M estimate. Meanwhile the Kiwi has increased even if the New Zealand data has come mixed, the Credit Card Spending has increased by 5.9% in May, but less than the 9.1% in April, has reached the lowest growth in the last 2-months, while the Visitors Arrivals has surged by 0.1% in May.
I’m really curious how the major currency pairs will react tomorrow during the Brexit referendum, most likely the Gold will increase because many traders will want to protect themselves, remains to see how the USD will move, I advise you to stay away from the GBP/USD pair tomorrow, or you could risk only a small part of your capital on this pair.

The pair is pressuring the 1.7164 horizontal resistance, we have a strong supply zone above this level, a rejection here will attract more sellers, which will drag the price toward new lows, the pair could show exhausted signals if will fail to touch and retest the median line of the ascending pitchfork. The perspective remains bullish as long as the price is trading inside the ascending pitchfork’s body, could become strongly bullish if will jump and stabilize above the median line of the pitchfork, we could see another leg lower only if the rate will escape again from the ascending pitchfork’s body. The price could find support at the 0.7052 level and lower at the lower median line of the ascending pitchfork, but a jump above 0.7176 resistance followed by a short consolidation will attract more buyers on this pair.

The rate is somehow expected to resume the upward movement because has managed to jump much above the previous highs from 0.7147 level, the pair could reach new peaks till the end of the day, the short term target remains at the median line of the Daily ascending pitchfork, where is expected to find strong resistance. A selling opportunity could appear if the rate will fail to stay above the 0.7176 horizontal resistance.

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