NZD/USD Pair Update

One of the currency pairs currency that has been consolidating inside a tight 400-pip of 0.7610 towards a 0.8000 range during the last four months is the NZDUSD. The range has been evenly more compacted at 250 pips as of 0.7610-0.7860 since the beginning of December.

As of the present, the kiwi slipped to test the lowest point of that below a range of 0.7700. For the meantime, the indicators utilized secondarily remained neutral, with the trading level of the MACD indicator with its signal line and the “0” level trapping the pair’s RSI within its own range of 40-55.

Although, NZD/USD trade has been slack as of late, growing increasingly is the breakdown that is likely. From the fundamental perspective, data is surfeited on tap for the rest of the week that included NZ CPI later today. As permits for US building and housing starts tomorrow, manufacturing data for NZ manufacturing and initial unemployment claims of the U.S. on Thursday with the Chinese PMI and existing U.S. home sales on Friday), not to mention the possibility of a spillover from highly-anticipated ECB meeting on Thursday.

If NZDUSD stays above a level of 0.7610, there is a favorable bounce this week, but if the key floor gives way, eyes of traders may turn down toward the key psychological .7500 level or a previous support around .7400. In either way, traders must be clarified on the way that NZDUSD is heading soon.