New Zealand Dollar

New Zealand Dollar: The Kiwi gained just over 0.5% against the USD during offshore trade peaking at 0.6988. New Zealand’s Performance Services index, though not as high as last month’s 54.4, was still in the green at 53.1 for January. Investor enthusiasm dampened during the US session and the Kiwi fell amid concerns over sovereign debt problems which continue to plague Greece and other European nations sapped the market’s appetite for higher yielding assets. The Kiwi opens higher at 0.6975 USD head of positive expectations for today’s PPI figures.

- We expect a range today in the NZD/USD rate of 0.6950 to 0.7015

Elliott Wave Bias - NZD/USD

The NZDUSD has found resistance at the confluence of the 61.8% retracement / short term trendline.  The rally from 6804 is in 3 waves (corrective…looks like a double 3), which leaves the NZDUSD vulnerable.  The next major support for the NZDUSD is not until 6600.  A Fibonacci confluence at 6365-6465 serves as a bearish objective.

Bias: SHORT

NZD/USD - Daily technical outlook

Trading strategy: stand aside
61.8% retracement ratio of the .7150-.6805 downward move currently limits the upside at .7020 but the kiwi dollar maintains its bid tone against the dollar – thus intra-day studies being bullish while writing this. Extended gains may open .7150 which is a more notable upside barrier. Above the .7100 mark, short-term sentiment turns positive. On the south side – breaching below intra-day support at .6900/30 would cancel the bullish structure, resuming downtrend. Current quote is .6991 @07:00 GMT

Support: .6950, .6900/30, .6850/60, .6800 and .6750
Resistance: .7000/20, .7100 and .7150
Market sentiment: long term – bullish, medium term – slightly bearish, short term – bearish, intra-day – bullish