NZD/USD: Bulls extend control, testing 20-DMA

Dhwani Mehta FXStreet

The bid tone behind the NZD keeps growing bigger as we head into mid-Asia, providing extra stimulus to the recovery in the NZD/USD pair from near 0.71 handle.

NZD/USD takes-out daily pivot

Currently, the NZD/USD pair trades +0.18% higher near fresh session highs of 0.7137, having found strong bids near 0.7120 region earlier on the day. The NZD/USD pair stalls its downslide and reverses almost half the previous decline, as the bulls benefit from board based US dollar correction after the recent upsurge.

Markets take profits off the table from their USD long positions ahead of the highly influential US GDP report due later in the NA session. While resurgence of risk-on trades into the markets also supported that the higher yielding currency NZD, pushing NZD/USD back towards the mid-point of 0.71 handle.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7158 (daily R1), above which it could extend gains to 0.7208 (100-DMA) and from there to 0.7235 (50-DMA). To the downside immediate support might be located at 0.7100 (round figure) and from there to at 0.7080 (key support), below which 0.7046/32 (200-DMA/Oct 13 low) would be tested.

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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