The NZD/USD rallied from support 0.8280(February 26, 2014 low) and extended gains in the previous week’s trading session. The pair later topped out at 0.8521 to make a resistance and rejection pattern on the Daily charts as price failed to penetrate 0.8446 resistance (October 22, 2013) after the announcement of the U.S Non-Farm Pay Roll.
Short term bias in the pair remains on the downside with a Pin bar formation on the daily charts and an engulfing rejection pattern on the 4hours time-frame with Volumes supporting. A break of the 0.8443 support (March 7, 2014 low) could see further supply to 0.8250 psychological zones.
However, a break of 0.8542 resistance would resume the bullish trend and demand to 0.8675 resistance (April 7 2013 high) is expected. Economists are speculating that the reserve bank of New Zealand would hike present Interest Rate with 25bps (2.50% to 2.75%) in its next meeting scheduled on March 12, 2014. This might bring further strength in the New Zealand currency against its major counterparts.