NZDUSD – Key Average supports further gains
8th June 2016
….I wrote back in late April how buying interest was dominating the background to NZDUSD.
To be honest the market has been less than convincing since that point as consolidation has set in near a key 50% correction point to the April-September 2015 decline.
But;
- the profit taking corrections from that point have been limited.
- the latest pullback has found fresh and strong buying at the 21 week moving average.
- weekly RSI signals remain positive – as they have, bar 1 small false break, since last September.
- weekly DMI signals are positive for NZDUSD – they have been since February and are at their most bullish levels since July 2014.
So I think you can see why we remain positive as the market attempts another test of the 50% correction point.
A break through there, preferably above .7056, May’s peak, will put the focus on the .7169/7233 area.
But keep a watch on the NZDUSD RSI indicator. The first threat to the bullish bias will, eventually, come from there.
