Both technical and fundamental factors continue to support the rapid rise in the NZD USD. The weekly swing chart is targeting a test of .6553 to .6573 by the end of next week.
Both technical and fundamental factors continue to support the rapid rise in the NZD USD.
Technically this pair is in an uptrend on both the daily and weekly charts. Upside momentum is strong although lagging behind the other commodity-based currencies. This should not hinder this pair’s progress to a major retracement zone at .6553 to .6945.
The weekly swing chart is targeting a balance of price and time at .6573 by the end of next week. Look for resistance to develop at .6553 to .6573. There may be a technical bounce triggered by profit-taking at this price cluster.
Fundamentally this market is lagging the other commodity-based currencies because the New Zealand economy is still showing signs of contraction. News this week showing that immigration was increasing provided some support as this may trigger an increase in consumer demand.
Although the conventional fundamentals indicate weakness, this market is being driven higher on speculation that U.S. debt may be downgraded by a credit rating agency.