NZD/USD attempts tepid-bounce, regains 200-DMA

Dhwani Mehta FXStreet

The Kiwi is seen extending its recovery mode from yesterday’s massive sell-off, as the bulls received fresh impetus from broad USD softness.

Currently, the NZD/USD pair rises +0.17% to 0.7171, flirting with session highs reached at 0.7176 last hour. The major reverses more-than half of the previous decline as markets resort to profit-taking heading into the release of Fed’s February meeting release, which is expected to throw fresh light on the timing of further rate rises in the coming months.

Moreover, the major is seen consolidating yesterday’s heavy losses incurred on the back of broad based US dollar rebound and a drop in NZ dairy prices, reflected by the GDT dairy auction, which recorded a 3.2% decline.

Meanwhile, markets ignored upbeat NZ credit card spending data, which arrived at +0.2% m/m vs. +3.2% last. In the day ahead, the spot could get affected by the USD dynamics, as investors gear up for the Fedspeaks, US existing home sales data and Fed minutes release.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7187 (10-DMA), above which it could extend gains to 0.7232 (20-DMA) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7147 (50-DMA) and from there to at 0.7124 (100-DMA), below which 0.7100 (round figure) would be tested.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	Shrinking
1H	Bullish	Neutral	High
4H	Bullish	Neutral	Low
1D	Strongly Bearish	Oversold	Expanding
1W	Bearish	Neutral	Expanding
Updated Feb 20, 06:45 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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