NZDUSD has hit our stop loss from previously published analysis/ signal on 27th Aug and is now heading towards its final destination according to our anticipated projection of the upcoming market. NewZealand dollar versus US dollar has broken above critical resistance turned support 0.69450 but still it cannot be marked as a shift in trend because the pair is currently standing below 50% fibb retracement level and another hurdle awaits at same zone with 0.7125 weekly price action. Though NZDUSD has broken below the weekly and monthly major support 0.6950 but the bullish reversal from exponential moving averages 50 and 200 in weekly along side the current intraday and daily chart structures are pointing towards strong bullish momentum. Kiwi is still in a bullish corrective structure and the shift from bearish to bullish trend will only be confirmed when it breaks above 50% and  61.8% fibb level, taking an exit from our upper trend line and creating an atmosphere of only temporary bearish retests of the aforementioned. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The hawkish RBNZ, encouraging Delta developments, and recent weakening in the USD are the main positives for the kiwi. Economists at Westpac expect the NZD/USD to race higher towards the 0.73 level on a break above 0.7090. The primary driver of this two-week old rally is the USD. It has weakened recently, due to Fed Chair Powell’s caution, some data losing momentum, and hawkish ECB comments. We are expecting NZDUSD to grow strong if the Delta variant doesnt gives a blow to the economical indicators again or with USD surprsing us with bullish strength. As long as NZDUSD manages to stay above 61.80% fibb retracement level in weekly i.e 0.6950 and exponential moving averages 50 and 200 in daily, we have positive expectations from NZDUSD to provide us with a bullish breakout above 0.7090 and 0.7125. 

NZDUSD REACHING ITS FINAL DESTINATION

Sep 02 2021

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