NZD/USD bearish biased heading into London session

Kiwi volatile in overnight session.
Dollar buying is still a popular market theme.

Joshua Gibson FXStreet

NZD/USD is spiking ahead of European markets, with the lower bound for the day getting pushed further out, as traders lack a directional bias on the Greenback. The pair is currently trading near 0.7355.

The Kiwi is continuing to struggle against the US Dollar, declining this week in thin volumes as China and the US both took the day off to celebrate national holidays; Chinese New Year in China and President's Day in the US.

Little data is slated for the Kiwi this week, but low-impact Retail Sales figures are expected late Thursday at 21:45 GMT. While growth for New Zealand has been sedate but steady, markets have been noticably jumpy lately, with traders dumping risk assets and piling into safe havens at a moment's notice, only to come right back.

NZD.USD Technicals

The pair's recent slide could be dooming, as a double top has begun to form from resistance at 0.7420. Long-term prospects still look good though, with price still trading well above the 34 EMA and 200-day SMA, and the last swing low pricing in as support from 0.7208. A move lower will run into support at 0.7345 and 0.7315, while bullish moves will be constrained by resistance priced in at the 0.7400 handle and 0.7430.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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