Not only did we get high NFP numbers for the previous month but we also got positive revisions for the past months. Its not a job market, it’s paradise! Back on earth, the USD is trading higher everywhere.
In this piece, we’ll focus on the NZD/USD, where the strength of the USD happened in a very interesting place.
At the end of January, the price broke an absolutely crucial support for the long-term situation on the NZDUSD – 0.67 (orange). First of all, that’s 38,2% Fibonacci. What’s more is that it was an important resistance in 2019 and 2020. In addition to that, we had a lower line of the flag (green) in the same place. Sellers crashed those supports creating a legitimate, proper, sell signal.
As it often happens, broken support is later tested as a resistance. That was also the case with the Kiwi. Thanks to the NFP, the price bounces off this resistance, which confirms a downward direction. Sentiment on NZD/USD is negative, as long as we stay below the orange area. Should the price come back above, it would be an amazing buy signal. But so far, this scenario is not very probable.
Dollar Explodes Following Splendid Nonfarm Payrolls
