Buy Dips In $NZDUSD

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The New Zealand dollar performed well against the US dollar recently and broke an important resistance area to trade higher. There was a lot of buying interest seen in the NZDUSD pair, which helped the pair in the near term. There was an important event lined up in Australia as the Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The outcome was above the expectation, as the employment change came in at 37.7K, more than the market forecasted for March 2015. This helped the Aussie and New Zealand dollar both.

There was a critical bearish trend line formed on the hourly chart of the NZDUSD pair, which was broken earlier during the Asian session to open the doors for more gains in the near term. The upside was stalled around the 0.7626 level, which opens the chance of a minor correction in the short term. The broken trend line might act as a support for the pair, which is now coinciding with the 38.2% fib retracement level of the last leg from the 0.7488 low to 0.7626 high. So, in short the 0.7570 level is a major support area for the NZDUSD pair and might be considered as a buy zone moving ahead. The hourly RSI is around overbought levels pointing a correction in the short term.

NZDUSD 04.16.2015

If the NZDUSD pair moves higher, then a break above 0.7625 might take it towards 0.7650.

Overall, one might consider buying dips in the NZDUSD pair as long as it is above the broken trend line.

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