NZD/USD Price Analysis: Teases inverse head-and-shoulder breakout above 0.7200
- NZD/USD bulls catch a breather around the intraday top.
- China data, risk-on mood favor buyers to confirm the bullish chart pattern.
- Pre-NFP trading lulls battles sustained trading above 200-SMA to confuse traders.
Having recently jumped to 0.7244, NZD/USD eases to 0.7238 while flirting with the neckline of a short-term head-and-shoulders bullish pattern during early Friday.
China’s upbeat Caixin Services PMI recently added extra strength into the pair’s trading beyond 200-SMA, which in turn joins upbeat Momentum on the 30-minutes chart to keep buyers hopeful.
Read: China's Caixin Services PMI rises to 56.3 in April, AUD/USD nears 0.7800
However, a clear upside break of 0.7245 becomes necessary for the NZD/USD bulls before aiming at the theoretical target of 0.7375. During the run-up, April’s top near 0.7290 and March’s top near 0.7310 may offer intermediate halts.
Meanwhile, pullback moves could revisit the 0.7200 round-figure but the 200-SMA level of 0.7186 may challenge any further weakness.
Should NZD/USD prices slip below 0.7200, the monthly low around 0.7115 will be in the spotlight.
NZD/USD 30-minute chart
Trend: Bullish
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.
