NZD/USD spiked up leaving retail gap open

June 09, 2016 11:52

Market was a bit surprised by a no rate cut from RBNZ that sent NZD/USD spiking above previous resistance leaving the trail of retail gap. The same time it appears that the US Fed, despite the slightly hawkish view of Yellen of late, will be unlikely to raise rates in June ahead of the UK referendum.

Technically the NZD/USD is showing a retail gap within 0.7027-0.7070 zone and it hasn't been closed yet. Additionally the gap is within POC zone (H3 WPP, 38.2, inner trend line). The zone 0.7020-60 could provide buying opportunities towards H5 weekly target 0.7250. However if the pair doesn't reject from the zone we might be witnessing a deeper retracement towards POC2 (78.6, L3, WPP, EMA89) 0.6985-0.6900 that also shows a historical gap and should be used for new moment buyers.

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