NZD/USD surges up to 0.69

The New Zealand Dollar was testing a medium-term channel down during the first half of Wednesday. This was an early indication that pointed to a soon upside breakout.

FOMC Meeting Minutes released at 1900GMT later in the day added some ground to the overall bullish sentiment, thus allowing the rate to reach the weekly R1 at 0.6899 by mid-Thursday.

Given that the Kiwi appreciated 77 pips within the last 24 hours, it is likely that this upward momentum allays during the second half of today, thus pushing the rate towards the combined support of the 200– and 55-hour SMAs and the weekly PP in the 0.6850/40 area. The 100-hour SMA is likewise located nearby.

By and large, the newly-drawn short-term channel is unlikely to hold for long, thus suggesting that bears might prevail on Friday, as well.

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