The low volatility seems not to stop the upside move of the New Zealand Dollar against the USD, with the NZD/USD cross which is trading bullish at the moment way over the 50-EMA at 0.7318 making a 0.08% positive performance from the start of the London session.
Tuesday’s hawkish comments by the RBNZ governor Wheeler have been fundamental in supporting the bullish momentum of the pair, which seems to consolidate the 3 consecutive day upper move. In addition the uncertainty regarding the rate-hike seems to cap the recovery of the US Dollar.
What is going down consistently, on the other hand, is the volatility, which is precipitated intraday to a weekly minimum.
Good news for traders who, whit this prospective, have good chances to enter Long and gain some pip during the upper move, even if they have to keep an eye on the parabolic SAR index: the 16-hours gain could revert, ant that will be the perfect moment to liquidate all the long positions.
Meanwhile Fonterra has increased his forecast on the Milk payout of 50c, to $NZ4.75/kg, after the recent Milk price increase.
Consequently, the total payout of $NZ 5.30/kg represent a multi-year high, very close to the average breakeven levels.
On the upper side the area positioned at 0.7345-50 seems to be the first real hurdle to overcome, but which once broken could open the street t the 0.7395 resistance (22 May 2015 High).
Looking at the opposite side, the first significant support is positioned at 0,7300 (round number) which could be difficult to brake, at least for now.