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The New Zealand dollar was seen trading higher against the US dollar during the Asian session. There were a few releases during the Asian session in the New Zealand and Australia, which lifted the mood if buyers. The NZDUSD pair spiked higher more than 80 pips and broke an important resistance. However, it also stalled around a critical resistance. It would be interesting to see how the New Zealand dollar behaves in the coming sessions. If the momentum continues, there is a possibility that the NZDUSD pair might spike one more time.

There is an important expanding triangle formed on the hourly chart of the NZDUSD pair, which acted as a hurdle during the Asian session. The pair stalled right around the triangle resistance area. Moreover, the 50% fib retracement level also sits around the same level. And, this is not all, the 200 simple moving average is around the same area. So, the 0.7927 area can be considered as a monster resistance for the pair. The reaction from the mentioned area was also obvious, as the pair turned lower immediately. Let us see if the pair can manage to climb back towards the 0.7920-30 area. If it does, then sellers are going to appear again.

Alternatively, the NZDUSD pair might continue heading lower towards the 100 hourly moving average. There is a chance that the pair might find buyers around the 0.7810-00 area, which is around the triangle support zone coinciding with 100 MA.

Overall, one might consider selling rallies around the triangle resistance zone as long as it stays below 200 MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com