The Kiwi (NZD/USD) continues is march higher after Statistics New Zealand released its quarterly GDP number showing growth of 1.1%, much better than the forecast 0.5%. The NZD rallied against the Greendback immediately after the news was released but has since given back all but about 23% of the gains and appears to be setting up to go lower on a 1-hour chart at time of writing (4PM Sydney Time). The Daily Chart is another story however as the pair has closed above the 61.8% retracement level from the April 12 high of 0.8318 to the June 1st low at 0.7455. It appears to be aiming for 0.8100 which was the floor of a 2 month long consolidation zone between March 05 to May 02 of this year. The pair found itself trading between 0.8100 & 0.8300 for 2 full months and clearly established what will be major resistance for the pair to break through. The pair is currently up against some heavy resistance at 0.8000 with both the Monthly R1 and Weekly R1 converging within 20 pips if each other and if this zone is breached 0.8120 will be the next target. If prices do turn bearish, look for key support at 0.7900, 0.7840 and 0.7745.
Happy Trading!