NZD/USD bulls target a break of daily resistance

  • NZD/USD bulls are in town but the resistance could hold.
  • The M-formation has been completed, so it is make or break time for the pair.

NZD/USD is currently trading at 0.7194 and between a range of 0.7186 and 0.7203. Overnight, the pair rose 0.6% to 0.7205 as the greenback to a back seat, pressured as investors look towards a week full of key US data.

The USD gave up on month-end gains and US bond yields fell which was a double whammy ahead of this week's Nonfarm Payrolls data. 

Meanwhile, we are trading in thin market conditions so moves can be over-exaggerated.

Most of Asia and Europe out for the May Day holidays or the equivalent.

As for the first cohort of critical data, the US ISM data softened but is still strong in level terms, according to analysts at ANZ bank. 

''The prices paid component ticked up, fuelling the inflation thematic that has been driving markets and calls for earlier central bank rate hikes, which could dent risk appetite and the NZD’s prospects if sustained.''

The analysts also argue that the next few days could be volatile, with the Q1 HLFS data out tomorrow.

''With the Reserve Bank of New Zealand looking for more surety before it makes its next move, the data won’t deliver definitive answers, but it’ll shape the narrative in the near term.''

NZD/USD techcial analysis


As for the technicals, the solid support is compelling as given the confluences.

Following the recent completion of the M-formation, the resistance might give but it could also see bull's struggle the first attempt resulting in a restest of support. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD skyrockets to 1.2150 on poor US jobs figures

EUR/USD has hit a new multi-month peak above 1.2150 after the US reported an increase of only 266,000 jobs in April against nearly one million expected. The dollar is under immense pressure. 


GBP/USD soars toward 1.40 after disappointing Nonfarm Payrolls

GBP/USD has been extending its gains after the US Nonfarm Payrolls badly disappointed with an increase of only 266,000 jobs in April, nearing 1.40. Earlier, sterling benefited from the UK Conservative Party's gains in local elections. 


XAU/USD soars above $1,835 after weak Nonfarm Payrolls

Gold has leaped above $1,835 after the US reported an increase of only 266K jobs in April, far below expectations. Lower US yields support the precious metal.

Gold News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Ripple's victory granted the firm access to the SEC's documents on the three leading cryptocurrencies. The regulatory agency recently denied the possession of these documents.

More Dogecoin News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more