NZD/USD Price Analysis: Consolidates post NZ GDP gains below 0.7150
- NZD/USD pares intraday gains led by New Zealand Q2 GDP.
- Two-week-old descending triangle keeps buyers hopeful, 100-SMA adds strength to the support.
- Steady RSI signals sideways grind to the north.
NZD/USD reverses the early Asian gains while declining towards 0.7100, up 0.04% intraday around 0.7110 amid the pre-European session on Thursday.
The Kiwi pair stretched the previous day’s gains during early trading hours after New Zealand (NZ) GDP for the second quarter (Q2) surprised markets with strong numbers. However, risk-off mood weighs on the quote of late.
With his, NZD/USD eases inside a short-term descending triangle bullish chart on the four-hour play.
Given the steady RSI conditions and sour sentiment, the latest pullback is likely to extend towards the formation’s support, also comprising 100-SMA near 0.7075-80.
It should be noted, however, that a clear downside break of 0.7075 will make the NZD/USD pair vulnerable to visit the 0.7000 threshold.
Meanwhile, an upside clearance of the triangle’s resistance line around 0.7150 will need validation from the monthly top surrounding 0.7175 before directing the bulls toward May month’s top near 0.7315.
Overall, NZD/USD is likely to grind higher but needs a strong fundamental push to the north, for which next week’s Federal Reserve (Fed) will be the key.
NZD/USD: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
