NZD/USD testing 0.7300 after a convincing bull breakout
- The NZD/USD made a clear breakout from the bear channel.
- The US Non-Farm Payrolls on Friday expected is expected to come out at 200K.
The Kiwi is trading at 0.7290 up 0.91% on Tuesday, making a clear breakout from the bear channel as seen on the 1-hour chart below.
NZDUSD 1-hour chart
Earlier on Tuesday, Fed President Kaplan made some hawkish comments saying that “the Fed should get started soon on tightening policy”. He went further by saying that “we are either at or beyond full employment” and that “raising rates now is the best way to sustain the expansion”. However, the news did not have a direct on the Dollar as the sentiment is rather bearish since last Thursday with Trump ‘s proposal regarding tariffs on iron and aluminium, which is seen as a trade war and therefore detrimental to the Dollar.
The major market mover for the greenback this week is most likely the United States Non-Farm Payrolls at 13.30 GMT. It is expected to come out at 200K. Wednesday will see the ADP Employment change at 13.15 GMT and the Trade balance and Labor cost figures at 13.30. Thursday’s Initial and Continuing Jobless Claims data will be released at 13:30.
Intraday resistance is seen at 0.7230 which is the 50% Fibonacci retracement level and the high of the day. Further up, the next significant resistance should be the 61.8% Fibonacci retracement at 0.7340. To the downside, support is seen at 0.7280 which is the 38.2% Fibonacci retracement. Further down resistance is seen at 23.6% at 0.7245.