The Kiwi (NZD/USD) surged higher after slightly better than expected numbers from the Q/Q GDP numbers were released during the early hours of Asian Trading but has pulled back to 0.82700 once again a little more than half way through the Asian Trading day. The pair has been trapped between Weekly Pivot at 0.82390 and Monday's high of 0.83038 this week, printing opposing pin bars on the daily charts for Tuesday & Wednesday. After a breaking above 0.8200 last week the pair has topped out at 0.83523 and pulled back into a holding pattern, possibly preparing for a surge higher on USD weakness. The pair seems to be propped up by the Daily S1 at 0.8248 combined with the previously mentioned Weekly Pivot and has been printing a series of higher lows, more or less all week. While the trend is rather bullish in the big picture, there is the possibility of a break lower if we breach the Daily S3 at 0.8209. The most likely target will be the Monthly R1 / 38.2% Fibo level at 0.8180 or the Weekly S2 / 50% Fibo Level at 0.8130. If the pair does push higher look for resistance again at 0.8310 and 0.8325 where the Monthly R1 sits. If last weeks high is broken, it will probably target the yearly high at 0.8470.
Happy Trading!