NZD/USD: holding trend-line support, testing hourly 21 SMA

NZD/USD: bid despite DXY strength.
NZD/USD bulls battle to maintain trend line support.

Ross J Burland FXStreet

NZD/USD is resisting the spike in the DXY and instead has turned bid and pressuring bear commitments around the hourly 21 SMA at 0.7359, bouncing off trendline support. Currently, NZD/USD is trading at 0.7360, down -0.15% on the day, having posted a daily high at 0.7377 and low at 0.7336. DXY is currently +0.59% at 89.62 trading within a range of between 89.217 - 89.802.

After reaching a six-day low of 0.7336, (around the 38.2% of the move up from the Feb 7th low at 0.73368), during the European am from a cent higher, (18th Feb high), where a loss of risk appetite equated a run on the higher betters, the bird has started to make a correction and despite the recent GDT price index data.

GDT price index disappoints

Latest Global Dairy Trade auction results showed the average price down at USD3,623 with the price index down -0.5% vs +5.9% previous. Offshore USD forces remain very much in the driving seat.

NZD/USD levels

NZD/USD bullish above 0.7435/40 – UOB

The key topside resistance line is made up from 0.7436 (Jan 23rd high) 0.7419 (30th Jan high), and 0.7379 (13th Feb high). The next key resistance, should this support level hold, is the 0.7435/40 triple top level ahead of 0.7557, 21st July 2017 high. 0.7360 and 0.7330 guards 0.7280 and 0.7180.

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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