NZD/USD bulls eye the double tops of 9th July business at 0.6857
NZD/USD has made fresh highs at 0.6842 and a full recovery of the 16th July's sell-off from 0.6840 on a broadly weaker dollar where talks between President Trump and European Union President Junker kicked off overnight. NZD/USD drifted from 0.6785 and eyes the double tops of 9th July business at 0.6857.
In a void of data other than the new homes sales, there geopolitical headlines which markets grabbed a hold of with firstly trade talks between President Trump and European Union President Junker and US senators introducing a bill overnight to delay the 25% tariff on close to $200bn of foreign-made automobiles that Trump has proposed until a report into the industry by the International Trade Commission can be conducted, as analysts at ANZ explained:
"Automobiles and parts were put under investigation in late May and the Commerce Ministry has 270 days to decide on its recommended action. The Washington Post reports that several of Trump’s advisors believe Trump will push forward with the tariffs regardless of recommendations. Europe has prepared an additional $20bn in retaliatory measures if Trump follows through on the automobile tariffs."
Trump accused China of being vicious over twitter
Additionally, the analysts noted that Trump accused China of being vicious over twitter, saying, “We were being nice – until now!”, but somewhat confusingly", the analysts added, "he then went on to say, “Negotiations are going really well, be cool. The end result will be worth it!" President Xi opened the BRICS summit saying “A global trade war should be rejected because there will be no winner”. He added that the rise of emerging markets “is unstoppable and will make global development more balanced”."
Support is located at 0.6720 and resistance remains located at 0.6860. The price has held the 0.6760 level and the break up through the 21-hr and 10-hr SMA and the 21/10-D SMAs has extended beyond the 0.6820 resistance. On a break of 0.6920, the June highs will come into focus. The 200-month moving average resistance at 0.7007 is next key level. Daily RSI heads higher underpinning the upside.