NZD/USD: recovery losing steam at 0.73 handle with bearish bias
|NZD/USD is currently stablising around the 0.73 handle while markets are sitting back awaiting the Jackson Hole event and US GDP data 2nd estimates for Q2.
NZD/USD has risen form 0.7286 and made highs of 0.7307 recently while commodities were firmer overnight and are set to remain so on a weaker US dollar allowing for further upside in the bird. However, the Jackson Hole holds plenty of risk for the pair and Yellen could send the greenback one way or the other depending on her rhetoric.
US key data wrap ahead of Jackson Hole - ANZ
The markets could be thin as we head into the end of the week and in that case, moves could be more volatile than usual. "Fed Chair Yellen’s address at the Jackson Hole symposium will be closely watched, particularly following the broad array of views on inflation offered lately by other FOMC members," explained analysts at Westpac.
NZD/USD levels
Current price is 0.7301, with resistance ahead at 0.7304 (Hourly 20 EMA), 0.7306 (Daily Classic PP), 0.7308 (Daily High), 0.7311 (YTD High) and 0.7311 (Monthly High). Next support to the downside can be found at 0.7301 (Daily Open), 0.7297 (Daily Low), 0.7293 (Hourly 100 SMA), 0.7287 (Yesterday's Low) and 0.7275 (Hourly 200 SMA). Looking at price patterns, we can see a Piercing Line 1-hour candlestick formation.
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