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NZD/USD Breaks Above Trendline Resistance Ahead of NFP

As we the market gets ready for the US Non-Farm Payroll release, the NZD is firming against the USD. The 4H chart shows a market breaking above a falling resistance that came down from the May and 2014 high of 0.8778.


(NZD/USD 4H chart, 6/6)


In the near-term, we should expect resistance at 0.86, especially if the NFP is USD-positive. That is, if the NFP comes in above the 214K forecast. 

A break above 0.86 after the NFP could be a sign of bullish continuation, with the 0.87 handle and 0.8778 high in sight. An additional clue to confirm this bullish outlook would the ability to hold above 0.85 upon a pullback. 

Below 0.8480, the NZD/USD remains bearish.