#NZDUSD @ 0.64021 prints four-day uptrend after China’s November month inflation data., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• NZD/USD prints four-day uptrend after China’s November month inflation data.
• Clear upside break of one-week-old descending trend line favor buyers.
• Convergence of 100-SMA, fortnight-old support line restricts bear’s entry.

The pair currently trades last at 0.64021.

The previous day high was 0.6389 while the previous day low was 0.6326. The daily 38.2% Fib levels comes at 0.6365, expected to provide support. Similarly, the daily 61.8% fib level is at 0.635, expected to provide support.

NZD/USD takes the bids to refresh the daily high near 0.6410 during the four-day uptrend on early Friday. The Kiwi pair’s latest gains could be linked to China’s monthly inflation data, as well as the technical breakout.

That said, China’s headline Consumer Price Index (CPI) dropped to -0.2% MoM during November versus 0.1% expected and prior. However, the yearly figures came in firmer, to 1.6% versus 1.0% market forecast and 2.1% prior. On the same line was the Producer Price Index (PPI) which improved to -1.3% YoY during the stated month despite -1.5% forecasts and -1.3% previous readings.

It should be noted that the NZD/USD pair’s sustained break of a two-week-long descending trend line joins firmer RSI and bullish MACD signals to keep buyers directed towards the monthly high near 0.6480.

In a case where the NZD/USD bulls dominate past 0.6480, the 0.6500 round figure and June’s peak near 0.6575 could flash on their radars.

Alternatively, the resistance-turned-support line, around 0.6355 by the press time, precedes the 50-SMA level of 0.6330 to restrict the short-term NZD/USD downside.

However, a convergence of the 100-SMA and an upward-sloping trend line from November 21, near 0.6255, appears a tough nut to crack for the Kiwi pair bears and holds the key for their entry.

Trend: Further upside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6406 at the time of writing. Pair opened at 0.6381 and is trading with a change of 0.39% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6232, 50 SMA 0.5937, 100 SMA @ 0.6032 and 200 SMA @ 0.6282.

The previous day high was 0.6389 while the previous day low was 0.6326. The daily 38.2% Fib levels comes at 0.6365, expected to provide support. Similarly, the daily 61.8% fib level is at 0.635, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6342, 0.6303, 0.6279
• Pivot resistance is noted at 0.6404, 0.6428, 0.6467

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