Signs that NZDUSD advance has more room to run
The much-anticipated CPI inflation update for the US delivered what many had expected: a higher number that the previous month. Bond yields rose accordingly, but the US dollar failed to follow suit. Something else seems to be going on there (please see today's article from Max McKegg, Why is the US dollar dropping when yields are rising?).
Management and risk description
The Kiwi’s Bullish “impulsive” Elliott Wave sequence from last November’s corrective low of 0.6780 persists (see daily & weekly charts below).
The Kiwi’s correction from its late January peak of .07435 bottomed last week at my 0.7190/0.7160 target area and is rallying nicely.
In the short term, with support now at 0.7345/.7330, we aere looking for the Kiwi to extend its advance toward resistance at 0.7430/0.7450, en route to the 0.7500 level.
Source: ThomsonReuters. Create your own charts with SaxoTrader; click here to learn more.