Looking at the NZD/USD weekly chart, you can see support right below us at the 0.7350 mark, and add to that the fact that the RBNZ recently cut 50 bps from the interest rate as it was more than expected. The fact that the country has had an earthquake, and a massive rate cut, yet has been holding up – is very bullish and impressive indeed.
The recent action suggests we are going to 0.78 and beyond, possibly to 0.80 before it’s all over. A break below 0.7350 could send us down to 0.70, but that is the less likely of the two scenarios.
