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The New Zealand dollar and the Aussie dollar were seen correcting higher against the US dollar. The NZDUSD pair traded a bit higher and it looks like there is more room towards the upside in the near term. The New Zealand building permits data will be released during the next Asian session, which might cause some action in the NZDUSD pair. If the outcome stays positive, then it might help the Kiwi dollar to some extent. The US dollar is setting up for a correction and there are a couple of economic releases lined up today, which might give a reason to the US dollar sellers for a correction.

There is a critical bullish trend line formed on the hourly chart of the NZDUSD pair, which might act as a catalyst for the pair in the near term. The most important thing here is the fact that the 200 hour moving average is also sitting around the trend line. Moreover, the 50% fib retracement level of the last leg from the 0.7712 low to 0.7799 high is also around the same area. So, if the pair moves lower from the current levels, then it might find support around the trend line support area. Only a break below the same might take the pair towards the 100 hour moving average, which is the next support.

On the upside, a break above the 0.7800 resistance area could set the pair for a move toward the 0.7840 level where sellers are likely to appear.

Overall, one might consider buying dips as long as the NZDUSD pair is trading above the trend line support area.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com/