NZD/USD: flirting with key resistance

The NZD/USD is seeking acceptance above the key resistance at 0.6851 (May 16 low), having scaled 0.6830 (38.2% Fib R of 0.7060-0.6688).
An above forecast China PPI is good news for the NZD.

Omkar Godbole FXStreet Contributor

The NZD/USD is mildly bid in Asia and is looking to scale the key resistance at 0.6851 (May 16 low) in a convincing manner.

A daily close above the key hurdle would validate the pair's move above 0.6830 (38.2% Fib R of 0.7060-0.6688) and embolden calls for a stronger rally towards the 50-day moving average (MA), currently lined up at 0.6921.

The New Zealand electronic card retail sales data released earlier today carried a strong headline, but the details revealed the 0.8 percent month-on-month rise seen in June and an upwardly revised 0.6% m/m lift in May were insufficient to offset April’s 2.2% decline. The murky details of the retail sales data could be capping the upside in the NZD/USD around 0.6851.

That said, a better-than-expected China producer price index (PPI) - a good indicator of demand for commodities - released a few minutes ago could make way for a solid break above 0.6851.

NZD/USD Technical Levels

Resistance: 0.6851 (May 16 low), 0.6921 (50-day moving average), 0.70 (psychological level).

Support: 0.6832 (session low), 0.6814 (5-day moving average), 0.6787 (10-day moving average).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Expanding
1H	Bullish	Neutral	Shrinking
4H		Overbought	Shrinking
1D	Bullish	Neutral	Expanding
1W	Bearish	Neutral	Expanding
Updated Jul 10, 02:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.