NZD/USD clings to gains above 0.7100 handle

Haresh Menghani FXStreet

After an initial dip below 0.7100 handle, the NZD/USD pair regained traction and turned positive for the third consecutive session.

Currently trading around 0.7115 region, testing session peak, the pair caught fresh bids near an important confluence resistance, now turned immediate support, near 0.7080-85 region comprising of the very important 200-day and 50-day SMAs. A follow through action, following yesterday's strong up-surge to fresh four-week highs, now seems to confirm a break-out and thus, suggests additional up-side from current levels, at-least in the near-term.

Traders would now look forwards to the US economic docket, featuring the release of monthly retail sales, PPI print and Prelim UoM Consumer Sentiment index, for fresh impetus to reaffirm the break-out. Nevertheless, the pair is still headed to post third consecutive weekly gains.

Technical levels to watch

From current levels, further upside momentum is likely to confront immediate resistance at 100-day SMA near 0.7155 region above which a fresh bout of short-covering seems to assist the pair back towards reclaiming 0.7200 handle ahead of December monthly highs resistance near 0.7230-35 region.

On the downside, 0.7085-80 region now seems to have emerged as immediate support below which the pair is likely to drift back towards 0.7050-45 region, en-route 0.7020 support and 0.70 psychological mark.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.6968

29% Bullish
57% Bearish
14% Sideways

Bias Bearish

1 Month

Avg Forecast 0.6927

27% Bullish
55% Bearish
18% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6799

7% Bullish
60% Bearish
33% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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