NZD/USD: bulls target 0.7320

NZD/USD is benefitting in a weak dollar environment with the DXY extending losses.

The FOMC minutes have been weighing on the dollar as they came out dovish vs the otherwise hawkish sounding statement of the previous meeting. This, coupled with improvements in the NZ economy, is keeping tje bird underpinned and enables to bulls to set their sights on 0.7320 key initial target on a break of the 0.07280 resistance. 

How volatile has NZD/USD been?

On the hourly NZD/USD chart, ATR (14) is presently at 19 pips, while 2-Standard Deviation Volatility Bandwidth is shrinking and currently 48 pips. On a daily chart, 2-Standard Deviation Volatility Bandwidth is expanding at 340 pips. Over the past four weeks, 19 pips has been the average movement for the current session. Following the four week period average, today’s most volatile hour was between 7:00-8:00 GMT which has an average movement of 25 pips.

What price levels and patterns have to be considered?

Current price is 0.7294, with resistance ahead at 0.7307 (Annual High), 0.7307 (YTD High), 0.7313 (Daily High), 0.7316 (Daily Classic R1) and 0.7324 (Yesterday's High). Next support to the downside can be found at 0.7281 (Monthly High), 0.7281 (Weekly High), 0.7277 (Hourly 20 EMA), 0.7260 (Daily Classic PP) and 0.7252 (Daily Open).  Looking at price patterns, we can see a Piercing Line 1-hour candlestick formation, and a Piercing Line 4-hour formation.