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The New Zealand dollar is trading higher Intraday against the US dollar, as buyers were seen aggressive recently. However, we must not forget that there is a monster resistance around the 0.7920-40 area, which might create selling pressure one more time on the NZDUSD pair. The REINZ house price index was released earlier during the Asian session, which came better than expected and helped the New Zealand dollar buyers in the short term. The report mentioned that the REINZ house price index increased by 1.4% in October 2014, compared with the last time. The NZDUSD pair was seen trading higher post release.

There is a critical bearish trend line formed on the hourly chart of the NZDUSD pair, which might act as a resistance for the pair in the short term. The pair is currently on the verge of testing the recent high of 0.7904. There is a high probability that the pair might surge higher from here, create a new high and challenge the highlighted trend line in the short term. In that situation, the New Zealand dollar sellers are likely to take a stand around the 0.7920-40 area, as it also represents a major pivot zone for the pair. The hourly RSI might also head towards the extreme levels if the pair spikes towards the highlighted trend line.

On the downside, initial support can be seen around the swing area of 0.7850. We need to see how the pair reacts and trades in the coming session.

Overall, one might consider selling around the highlighted trend line as long as the 0.7940 area holds.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com