NZD/USD leaps to session highs despite USD strength

Eren Sengezer FXStreet

The NZD/USD pair gained some bullish momentum in the last hour and reached a new session high at 0.7022. As of writing the pair was up 0.13%, at 0.7020.

The pair's rise came in while the greenback was gathering strength against its major rivals. The US Dollar Index remains near daily highs around 99.90 during the NA session. This inconsistency suggests that the pair may be reacting to week-end flows. Today's data from the U.S. were largely ignored by the participants. The U.S. Treasury bond yields, which have been the main driver of the USD movements, remain calm on Friday as well and fail to provide any insights regarding the market sentiment.

Nevertheless, the pair still moves in a 30-pip range on Friday and there are no signals that point to a new trend. In fact, the trading range for the pair during the whole week was around 70 pips. The bigger picture is not looking any different either. Since the beginning of the month, the pair remained between 0.6900 and 0.7050.

Technical outlook

The immediate resistance for the pair is located 0.7050 (Thursday high) ahead of 0.7080 (100-DMA) and 0.7130 (200-DMA). To the downside, supports could be seen at 0.7000 (psychological level) followed by 0.6975 (Apr. 14 low) and 0.6910 (Apr. 12 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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