NZD/USD: early demand for the bird, bulls protecting 0.7200

NZD/USD: bearish signals on the charts and the dollar remains bid.
Bird needs to get above the 0.7280 level or risk below 0.7200.

Ross J Burland FXStreet

NZD/USD is currently trading at 0.7214 with a high of 0.7219 and a low of 0.7213, trading on the defensive after an extension of the downside. In the North American session, the Kiwi opened around 0.7225 following a decisive offer from European trade where the pair slid from 0.7241 in Asia to 0.7200 the European low.

Broad-based stronger greenback, but for how long?

The move came in a broad-based string dollar on Friday where the DXY was breaching the 90 level and holding in positive territory. Analysts at Brown Brothers Harriman, however, note that the dollar may well be bid, but it has not 'broken' higher in terms of a conclusive breakout.

Dollar broadly higher, but NO breakout - BBH

The Kiwi was able to find some traction in early trade to 0.7225 but that was faded and the opening level today is lacking conviction on the bid. "The market has been caught long," according to analysts at ANZ, "and is being forced to square up, with key support levels likely in for a thorough test. The 200 day moving average, at 0.7185, is key to watch," the analysts added.

NZD/USD levels

The technical outlook is bearish with falling RSIs and a long upper wick on the monthly candle while the price trades below the 100-D SMA. Support is at 0.7210 while resistance is 0.7280.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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