FX.co ★ NZD/USD Fundamental Analysis February 23, 2017

NZD is said to gain strength again after the price bounced off from 0.7240. After the FOMC Meeting Minutes, NZD has picked up steam and continued its advance even today without any intervention of the bears in the market. USD seemed to be weaker against NZD, though NZD has no high impact economic event to boost its power. Today, the economic calendar contains the US unemployment claims report. The number of initial jobless claims is projected to rise 242k in February from a 239k gain in January. The government data on US crude inventories is expected to show a fall to 3.4M barrels last week from 9.5M earlier. Analysts assume USD could strengthen in case the reports confirm the consensus. Otherwise, USD could weaken if the reports are worse than the forecast.

Now let us consider the technical view. The price is currently heading towards the resistance at 0.7240 after rejecting from it earlier. The bulls in this pair are moving in an impulsive manner which does indicate a pre-breakout structure in place. The price is likely to break the resistance. After breaking the resistance it is expected to go up towards 0.7380.