According to Westpac, the New Zealand Dollar is bullish despite the fact that the negative report on China’s business activity keeps pressing the currency.
The key event that determines the succession of events in the market of NZDUSD is the latest FOMC meeting, which disappointed investors.
Nevertheless, purchases are still dominating over sales. The strengthening of the NZ Dollar against the Aussie and the expectation of higher milk prices due to severe droughts in the USA create conditions for a further rally of NZD.
According to , the New Zealand Dollar has suspended its long-term bullish trend against the US Dollar. NZDUSD is reported to have finished forming wave А(С)/С of Daily inside a bigger-scale upswing represented by wave А/В of Weekly or higher.
At this point, the currency pair is forming wave В(С)against the bullish move. A break below 0.8067 will give way to 0.8062, 0.8013, 0.7974. Alternatively, a break above the local high at will initiate another bullish move which will take the shape of А(С)/С. If this is the case, the price may encounter resistance at 0.8233.
