11 Jul 2013
NZD/USD capped at 0.7970
FXstreet.com (London) - NZD/USD has dropped back to test the 0.7900 handle and offered in European markets post FOMC minutes.
NZD/USD rallied over 200 pips after the release of the FOMC minutes. Alvin Pontoh, FX & Rates Strategy at TD Securities said the Fed Chairman Bernanke’s comments overnight that the US economy still needs “highly accommodative monetary policy ...in the foreseeable future”. He said this came after the release of the FOMC minutes which revealed that “many” members wanted to see “further improvements” in the labour market before tapering, while only “several” thought it was appropriate to taper soon.
NZD/USD breaks descending resistance
NZD/USD rallied higher and broke the descending resistance line when it moved through 0.7860 on the way to 0.7970. The pair could be supported there on pullbacks and profit taking as the week draws to a close over the next few sessions. Next target higher would appear to come as the 50 day SMA around 0.8025.
NZD/USD rallied over 200 pips after the release of the FOMC minutes. Alvin Pontoh, FX & Rates Strategy at TD Securities said the Fed Chairman Bernanke’s comments overnight that the US economy still needs “highly accommodative monetary policy ...in the foreseeable future”. He said this came after the release of the FOMC minutes which revealed that “many” members wanted to see “further improvements” in the labour market before tapering, while only “several” thought it was appropriate to taper soon.
NZD/USD breaks descending resistance
NZD/USD rallied higher and broke the descending resistance line when it moved through 0.7860 on the way to 0.7970. The pair could be supported there on pullbacks and profit taking as the week draws to a close over the next few sessions. Next target higher would appear to come as the 50 day SMA around 0.8025.