NZD/USD attempting a fresh move towards 0.7200 handle

Haresh Menghani FXStreet

After failing to sustain its move back above 0.7200 mark, the NZD/USD pair caught fresh bids on Friday and now seems to make a fresh attempt towards conquering the said handle.

Currently trading around 0.7185 region, the pair maintained its bid tone for the third consecutive session despite of resurgent greenback buying interest in wake of Thursday's ECB decision to extend its asset purchases until December 2017. The pair continues to gain traction after RBNZ Governor Graeme Wheeler, on Thursday, offered less dovish outlook for NZ economy and dampened prospects of any additional monetary easing in the near-future.

Further upside, however, is likely to remain capped amid growing expectations of faster Fed rate-tightening cycle, beyond December meeting, which might continue to undermine higher-yielding currencies - like the Kiwi. The Fed is scheduled to announce the outcome of its latest monetary policy meeting next week on Thursday.

Later during NA session, Prelim UoM Consumer Sentiment would be looked upon for short-term trading opportunities, while broader market risk sentiment would also contributed towards the pair's momentum on the last trading day of the week.

Technical levels to watch

From current levels, 0.7200 handle (100-day SMA) remains immediate resistance, which if conquered is likely to lift the pair immediately towards 0.7228 (Nov. 11 high) ahead of 0.7260-65 resistance area. On the downside, weakness below 0.7165-60 region (session low) is likely to accelerate the slide towards 0.7125 intermediate support, en-route 0.7100 handle.

Sell 29%

Buy 71%

Avg Sell Price 0.7178

Avg Buy Price 0.7145

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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