NZD/USD spiked to new Asian high at 0.8657

FXStreet (Moscow) - NZD/USD recovered from current Asian low at 0.8611 and spiked to 0.8657

Kiwi has settled down

Kiwi bulls demonstrated a great will to win on Tuesday as NZD/USD tested the resistance of 0.8670. But they failed to keep the ground and the pair finished the day with marginal gains at 0.8629. Wheeler from RBNZ speculated about NZD carry trades, he hinted that Japan may be a source of such trading activity. Apart from that central Bank official noted that house prices remain overvalued. This helped the pair to take off from the Asian low at 0.8611 and touch current high at 0.8649. Now NZD/USD trades at 0.8642 and we need to break above Tuesday’s high to open up the way to the next important target at 0.8700.

What price levels and patterns have to be considered?

Current price is 0.8654, with resistance ahead at 0.8656 (Hourly 200 SMA), 0.8657 (Daily High), 0.8661 (Weekly High), 0.8661 (Daily Classic R1) and 0.8665 (Weekly Classic PP).

Next support to the downside can be found at 0.8639 (Daily Classic PP), 0.8636 (Hourly 100 SMA), 0.8636 (Hourly 20 EMA), 0.8627 (Daily Open) and 0.8625 (Daily 20 SMA).

Patternwise, we can see a Shooting Star formation on the 1-hour .