nzd/usd looking for short term upwards move (8th July,2022)

attached is the chart of nzd/usd (New Zealand dollar) daily.

Rationale :

Technical View :-

1.nzd/usd has been working inside the medium term falling wedge (bigger dotted lines) since the fall from .70500.

2.short term falling wedge (smaller dotted line) is formed inside medium term to indicate the further bullish technical view.

3.positive Rsi divergence is formed presented with small black line in the price chart going down & in lower window of Rsi moving up , creating the positive divergence.

technical view is getting bullish & the accumulation area is being formed indicated by increasing volume from lows.

Fundamental  View :-

1.RBNZ has been among the very few banks who have been raising interest rates aggressively from the start, even before FED & they are expected to raise it more further by at least 50bps.

2.nzd/usd is heavily affected by the dairy products auctions & rates. As the food inflation in rising rapidly so does the dairy products, expecting the auction to be on the bigger positive territory again.

3.special consideration should be taken as on Friday , US non-farm payrolls & unemployment rate will be published which can effect the prices quickly.

Plan :-

buy the pair, nzd/usd, between .60600-.61250 for the target of .64000-.65200.

Thank you,

Sanjay Galani, CFTe

@marketcrafts