NZD/USD Signs of Recovery

NZD/USD suffered a lot of depreciation last month when New Zealand went through a political change that posed insecurities in its financial markets. That's when the pair lost about 400 points against the US dollar.

The support was precisely met at 0.6817. Bulls were quick to react and supported the pair with heavy buying that drove the price to a high of 0.6956. Currently the pair is trading at 0.6913, slightly lower than the highest point reached earlier this week.

If the uptrend continues we might see the pair break the first resistance level at 0.6980. After that, next bull target is seen at 0.72 which would mark a double top. And major target is expected at 0.7500. It is dubious if we would get there before the year end as we are anticipating a rate hike in December and that would, in theory, mean a stronger dollar.

Chart: NZD/USD H4