NZD/USD bulls challenge 0.7300 ahead of Fed’s Mester speech

FOMC´s member Mester is scheduled to speak at 20.30 GMT.
The US dollar remains under pressure as the week starts.

Flavio Tosti Independent Analyst

The NZD/USD is trading at around 0.7290 up 0.90% as earlier in the Asia session, the New Zealand trade data showed strong exports at 4.46b while imports were at 4.24b in February resulting in a positive Trade Balance of 217m in February. The USD is still under pressure since last week dovish hike and the escalating trade war between the US and China. Although tensions seem to have eased as China retaliation seems less aggressive than previously anticipated.

Loretta J. Mester, president and chief executive officer of the Federal Reserve Bank of Cleveland is scheduled to deliver a speech about monetary policy at 20.30 GMT.

NZD/USD weekly chart

The bulls are trying to break above a descending trendline. The NZD/USD pair is trading above its 50, 100 and 200-period simple moving average while the RSI and MACD are constructive.

NZD/USD daily chart

The bulls are challenging the 50-period simple moving average dynamic resistance at 0.7295 while the next resistance is seen at 0.7350 last swing high, followed by 0.7439 the high of 2018. To the downside, support is initially seen at 0.7200 demand zone and 0.7150, a cyclical low.

NZD/USD 1-hour chart

The Kiwi is testing the 0.7300 figure resistance. If bears win the next support level is seen at 0.7240, the 50 and 200-period simple moving averages; followed by 0.7200 swing low. If the bullish momentum persists, next resistances are at the 0.7320 and 0.7340 supply levels.

Author

Flavio Tosti

Independent Analyst

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