NZD/USD off 5-week tops, back below 0.7200

Dhwani Mehta FXStreet

The New Zealand dollar is seen trimming gains against its American counterpart in the early European morning this Friday, pushing the NZD/USD pair to extend the retreat below 0.72 handle.

Currently, the NZD/USD pair trades +0.0.08% higher at 0.7198, having posted fresh 5-week highs at 0.7225 earlier today. The NZD/USD pair is seen doing away with its bid tone as the greenback takes on the recovery above 101 handle versus its six main rivals.

While the Kiwi looks past upbeat Chinese Q4 GDP data, which revived hopes of a steady economic recovery in China, New Zealand’s biggest trading partner. The major now remains at the mercy of the USD dynamics, as Trump takes office as the US 45^th President later today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7225 (5-week high), above which it could extend gains to 0.7250 (psychological levels) and from there to 0.7300 (zero figure). To the downside immediate support might be located at 0.7166 (5-DMA) and from there to at 0.7123 (10-DMA), below which 0.7106 (100-DMA) would be tested.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Expanding
1H	Bearish	Neutral	Expanding
4H	Bearish	Neutral	Shrinking
1D	Slightly Bullish	Neutral	High
1W	Bearish	Neutral	High
Updated Jan 19, 04:45 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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