The NZDUSD was very bullish the last week, breaking important resistance’s levels but we must pay attention to this currency pair, because the kiwi is showing some overbought conditions.
The NZDUSD is forming a lower high pattern on the daily chart. Currently, is near at the resistance on the upside in 0.8437, that in case of break, it could lead to the NZDUSD to visit the 0.8471 level. On the other hand, if the kiwi does make a breakout in support in 0.8391, may fall to the next support at 0.8330.
I see the NZDUSUD very bullish, because the indicator MACD is in positive territory and the kiwi is above the 200 day moving average, but be cautious, because the resistance of 0.8437 is very strong, which could stop the bullish way of the kiwi.
For this week at the fundamental outlook, we could highlight just a high impact economic event for the NZDUSD: NZIER Business Confidence (Tuesday, 0:00 GMT), which has a previous reading of 20. You must pay attention to this event, because it could generate enough volatility in the kiwi.
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