NZD/USD: bulls need to get above key MAs, lack of conviction
|- NZD/USD: bulls need to get back above water and recoveries are not convincing.
- NZD/USD: no data ahead for the day, the focus remains on geopolitics and global trade relations.
NZD/USD has been under pressure for the most part of sessions overnight, falling from 0.7262 after failing to clear the converging 10 and 21-D SMAs. Currently, NZD/USD is trading at 0.7221, down -0.09% on the day, having posted a daily high at 0.7264 and low at 0.7212.
As analysts at ANZ noted," the NZD bounced off support on a buy (USD) the rumour the FOMC would be tightening this month and then sell the fact when they did. It managed to hold on to gains overnight despite increasing trade concerns between the US and China, which could be bad for global trade, growth and commodity prices."
NZD/USD reversal not quite happening, closing 0.7220's
In fact, NZD/USD is still some way short of a reversal of yesterday's 0.7153 rallies to the aftermentioned highs and is being held up by the descending 100-hr SMA at 0.7211. Markets seemed to shrug off some of the downside, post the tariff announcements, and the bird moved towards the close at around 0.7225.
White House mayhem: VIX spiking, but dollar higher, stocks and USD/JPY recovering from major sell-off
NZD/USD levels
Technicals are leaning bearish with the long upper wicks on daily and monthly candles standing out while daily RSIs are biased to the downside. However, the bird needs to get back above the 10, 21 and 55-DSMAs for a clearing of the descending trendline resistance last breached at the 0.7300 level on 12th March. Moreover, closes have to occur above 0.7320 with the 21-D SMA falling in at 0.7267 and the 50-D SMA 0.7293 as the first major hurdles.
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