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NZDUSD confirms rising wedge on strong NZ employment data

Long
FX:NZDUSD   New Zealand Dollar / U.S. Dollar
With the firmer Q2 jobs report, the RBNZ is all set to become the first developed nation central bank to announce a rate hike in 2021. The bullish consensus spread like a wildfire among the top-tier banks following the data, fueling the NZDUSD prices beyond a key hurdle from mid-June, which in turn confirmed a bullish formation suggesting a theoretical jump towards revising the May month’s low near 0.7315. During the run-up, tops marked during July and June, respectively near 0.7100 and 0.7240 may offer an intermediate halt.

Alternatively, pullback moves below the resistance-turned-support line, around 0.7025, will be challenged by 200-SMA and a one-week-old rising support line, close to 0.6990–85. Should NZD/USD sellers break the 0.6985 level, the pair’s further weakness towards 0.6920 and July’s bottom surrounding 0.6880 can’t be ruled out. However, the support line of the stated wedge , around 0.6860, will challenge the quote’s declines past 0.6880. Overall, optimism concerning the RBNZ’s rate hike backs the NZDUSD bulls.

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