NZD/USD continues pushing higher, now flirting with 0.6900 level but capped by 200DMA/annuals highs for now

NZD/USD looks set to end the week firmly on the front foot and on course for a fourth successive session of gains.
The pair is currently flirting with the 0.6900 level but remains capped by solid resistance (200DMA, annual high).
A bullish breakout could open the door to a push towards 0.7000.

Joel Frank Independent Analyst

NZD/USD looks set to end the week firmly on the front foot and on course for a fourth successive session of gains. The pair has spent Friday’s session flirting with the 0.6900 level, but is for now being prevented from breaking higher by formidable resistance in the form of earlier monthly/annual highs in the 0.6925 area and the 200DMA at 0.6912. But NZD/USD still trades about 0.25% higher on the day and is up more than 2.5% versus earlier weekly lows in the 0.6730 area.

Earlier in the week, fears about lockdowns in China as the Omicron Covid-19 variant began spreading in various cities, challenging the country’s zero Covid policy, weighed on the NZD/USD and these fears appear to have ebbed somewhat, facilitating the rebound. Adding to that, the ongoing Russo-Ukraine war and subsequent harsh Western sanctions on Russian exports mean that other commodity-linked currencies like the kiwi remain in high demand. Meanwhile, the Fed’s hawkish policy announcement and subsequent hawkish commentary from two of the bank’s policymakers has failed to translate into US dollar upside, thus failing to prevent the recover over the last four session.

The kiwi also has the backing of a very hawkish central bank, with the RBNZ arguably the most hawkish G10 central bank right now (though the Fed is catching up). The suggestion is that NZD/USD can most certainly continue its recent rally. If it can muster a clean break above 0.6900 and above its 200DMA and earlier monthly highs, a rally back to 0.7000 is very much on the cards.

NZD/Usd

Overview
Today last price	0.6895
Today Daily Change	0.0013
Today Daily Change %	0.19
Today daily open	0.6882

Trends
Daily SMA20	0.6786
Daily SMA50	0.6731
Daily SMA100	0.6813
Daily SMA200	0.6916

Levels
Previous Daily High	0.69
Previous Daily Low	0.6823
Previous Weekly High	0.6926
Previous Weekly Low	0.6796
Previous Monthly High	0.681
Previous Monthly Low	0.6565
Daily Fibonacci 38.2%	0.6871
Daily Fibonacci 61.8%	0.6852
Daily Pivot Point S1	0.6837
Daily Pivot Point S2	0.6791
Daily Pivot Point S3	0.676
Daily Pivot Point R1	0.6914
Daily Pivot Point R2	0.6945
Daily Pivot Point R3	0.6991

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

EUR/USD gives away some gains, back to 1.1680

EUR/USD remains well supported at the start of the week, now slipping back to the 1.1680 zone following earlier tops near 1.1700. Broad US Dollar weakness continues to do the heavy lifting, as fresh doubts about the Federal Reserve’s independence dent market confidence. With US CPI due on Tuesday, traders are likely to rein in risk and proceed with a bit more caution.

GBP/USD advances markedly, retargets 1.3500

GBP/USD opens the week with a stronger tone, leaving behind part of the recent retracement and refocusing on the key 1.3500 yardstick. Indeed, Cable is being buoyed by fresh downside pressure on the Greenback, after renewed criticism from the US administration aimed at Fed Chair Powell rekindled concerns over the Fed’s independence.

Gold unabated at record highs, more to come

Gold stays on a strong footing on Monday, chalking up a third consecutive day of gains and notching fresh record highs near the $4,620 mark per troy ounce. The rally is being fuelled by renewed, heavy selling in the Greenback, alongside a fresh flare-up of geopolitical tensions in the Middle East.