NZD/USD’s rallies may soon be over as the pair is currently approaching a key forex resistance level, which is visible on the 4-hour time frame. The pair is just a few pips away from testing the top of the range, which spans from the support near the .8500 major psychological level and forex resistance at the .8700 major psychological level.
The pair is already showing signs of exhaustion from the recent rally but buyers could still push it all the way up to the top of the range, where plenty of sell orders are waiting. If the ceiling holds, the price could fall back to the bottom of the range on the 4-hour chart or until the middle around the .8600 level.
Forex Resistance on NZD
Coming up for New Zealand this week is the quarterly jobs report and a slowdown in hiring is eyed. If that’s the case, NZD/USD could make an early selloff from the current resistance levels and head back to the bottom of the range or even make a downside break throughout the week.
On the other hand, a very strong quarterly jobs figure could push NZD/USD way past the forex resistance and until the next barrier at the .9000 major psychological mark. Take note though that the RBNZ is keen on keeping the Kiwi weak in order to encourage export demand, which suggests that they could jawbone the currency if it appreciates too quickly.
A few short-term reversal candlesticks can already be seen around the pair’s current trading levels, indicating that it is already encountering forex resistance. The next price moves might also hinge on the upcoming US economic events, namely the release of the ISM non-manufacturing PMI and Fed Chairperson Janet Yellen’s testimony in Congress this week.
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