Yahoo Finance New Zealand dollar rallies on Monday
The New Zealand dollar has rallied significantly through the session on Monday, reaching towards the 0.6930 level, the top of what looks to be a bit of an ascending triangle on the hourly chart. This could be a very bullish sign and would measure for a move to the 0.70 level, which of course has a significant psychological allure. I think that the 0.70 level would be rather resistive though, so any bounce that we get on this chart should be short term. We have certainly seen an extreme amount of negativity, and of course the US dollar continues to show strength due to interest rates rising in the treasury markets.
The New Zealand dollar of course is very sensitive to commodity markets and risk appetite in general, so keep that in mind. I believe that the New Zealand dollar will offer a nice trading opportunity as soon as we can show signs of exhaustion, but the first thing that I would point out is that the lows have been getting higher, which tells me we are starting to build a bit of upward momentum.
If we were to break above the 0.70 level, that would be a very bullish sign, and could allow this market to go much higher. However, I think that we are starting to see signs of a very strong summer for the US dollar, and that this bounce in the end would probably be a nice selling opportunity.
NZD/USD Video 22.05.18
This article was originally posted on FX Empire
