NZD/USD has broken above the 0.7050 resistance area recently which led to creating a new higher high in the process. NZD has been quite strong with the gains recently amid temporary weakness in USD due to recent downbeat economic reports and conditions. Today, US Unemployment Claims report was published with an unchanged figure of 245k which was expected to decrease to 240k, Goods Trade Balance was published with a greater deficit of -69.7B from the previous figure of -68.1B which was expected to be at -67.7B, and Chicago PMI report showed an increase to 67.6 from the previous figure of 63.9 which was expected to be at 62.2. On the NZD side, New Zealand presented no economic reports this week and despite that NZD gained impulsive momentum to break above a strong level of 0.7050. As for the current scenario, the impulsive break against USD signals weakness of USD against NZD and how far NZD can dominate USD in the coming days. As the pressure builds up, NZD is expected to gain more momentum in the coming days until the US comes up with better than expected macroeconomic reports to support its recovery or future gains.
Now let us look at the technical chart. The price is currently residing above the 0.7050 event level which is expected to be retested before price proceeds higher towards 0.72 resistance area in the coming days. The price has been bullish since the bounce off the 0.68 support area and the bullish bias is expected to continue further until price remains above 0.70 support area in the coming days.
