Dollar selling continues in the session
And with that, NZD/USD now rises to a high of 0.6611 on the day. Price is now closing in on the 22 October high @ 0.6618. For me though, if price holds a daily break above 0.6600 it’s already a win for buyers at this point.
The dollar selling today has so far been unrelenting and there hasn’t been much to suggest that it will come to a halt at this point. As mentioned earlier, technical levels are starting to give way in the dollar with cable also rising beyond 1.2900 and AUD/USD looking to break above the 0.7150 resistance region now.
With NZD/USD also looking to crack above 0.6600 and resistance at 0.6618, a move towards the 100-day MA (red line) @ 0.6669 will really start to pose a serious threat of a potential squeeze higher as shorts begin to get flushed out.
In such a move, don’t rule out a quick jump towards 0.6800 first before we head towards the 200-day MA (blue line).