The FOMC meet showed the Fed are in absolutely no rush to taper, and the USD has lost ground and should continue to do so in the near-term. Commodity currencies should remain in vogue, and as we see from the set-up, NZDUSD printed a bullish outside day, rejecting the move below the 5-day EMA.
A close below the 5-day EMA will suggest more choppy trade and confirm the change in stochastic momentum – however, should price build on the Fed induced reversal and we see a higher high, the risk is the bulls push the pair into 0.7300/50. A close above 0.7250 would elevate confidence in the position – and, we see, aside from a brief period in late February, supply has been ever present into this level on multiple occasions – so a close through here should be significant.
A close below the 5-day EMA will suggest more choppy trade and confirm the change in stochastic momentum – however, should price build on the Fed induced reversal and we see a higher high, the risk is the bulls push the pair into 0.7300/50. A close above 0.7250 would elevate confidence in the position – and, we see, aside from a brief period in late February, supply has been ever present into this level on multiple occasions – so a close through here should be significant.