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NZD/USD bulls are aiming at 0.8130

JFD Brokers UUIIFXBR
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The USD is looking pretty weak against the NZD at the moment, having broken above the key level of 0.7915, a previous resistance. The next test for the pair will be whether it can hold above the strong level of 0.8000. It has failed to break above here quite a few times recently, which highlights how big a level it is for the pair.

On the 4-hour chart, the 200-period SMA is ready to provide a significant resistance to the price action around that area, while the ascending trend (return line) is ready to become an obstacle for the bulls in case of a further rise. If it does continue to edge higher from here towards the 0.8040 level, it should find resistance along the way around 0.8065, another strong resistance level. A decisive break above that level, then we could see a more serious correction towards the 0.8130. Further rise would open the way for a challenge of the psychological level at 0.8400, which is my target for the long term holders on the NZDUSD pair.

On the other hand, if we see a close below the 0.7915 barrier, then we could see a much bigger retracement, following three consecutive winning weeks. However, I’m not convinced that we will see that at this stage though since our technical studies support a further rise. The MACD is moving in a bullish territory above its trigger supporting the bullish picture of the pair, while Stochastic moved above 80. Also, the rate remains above the 50-period moving average, confirming the bullish attitude of the price action.

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