NZD/USD remains confined in a range below 0.6200 mark, 100-DMA

NZD/USD gained some traction amid the emergence of some fresh USD selling.
The upbeat market mood weighed on the safe-haven USD and benefitted the kiwi.
Concerns about worsening US-China relations might keep a lid on any strong gains.
A sustained move beyond 0.6200 mark needed to confirm a near-term bullish bias.

Haresh Menghani FXStreet

The NZD/USD pair lacked any firm directional bias and traded in a narrow trading band, just below the 0.6200 mark through the early European session.

The pair stalled the overnight pullback from 2-1/2 month tops near mid-0.6100s and managed to regain some positive traction on Thursday. The uptick was supported by the upbeat market mood and some renewed US dollar selling pressure.

The global risk sentiment remained well supported by the optimism over a potential COVID-19 and hopes of a sharp V-shaped recovery for the global economy. This, in turn, dented the greenback's relative safe-haven status and benefitted perceived riskier currencies, like the kiwi.

Meanwhile, investors remain concerned about a further escalation in diplomatic tensions between the United States and China, which should hold back bullish traders from placing fresh bets and keep a lid on any strong gains for the NZD/USD pair.

Even from a technical perspective, the pair has been struggling to find acceptance/build on its momentum beyond 100-day SMA near the 0.6200 mark. Hence it will be prudent to wait for some strong follow-through buying before positioning for an extension of the recent appreciating move.

Moving ahead, market participants now look forward to a slew of important US macro data for some fresh impetus later during the early North American session. Thursday's US economic docket highlights the release of the second estimate of Q1 GDP, Durable Goods Orders for April, Initial Weekly Jobless Claims and Pending Home Sales.

Technical levels to watch

NZD/USD

Overview
Today last price	0.619
Today Daily Change	0.0010
Today Daily Change %	0.16
Today daily open	0.618

Trends
Daily SMA20	0.6078
Daily SMA50	0.601
Daily SMA100	0.6205
Daily SMA200	0.6318

Levels
Previous Daily High	0.6234
Previous Daily Low	0.6149
Previous Weekly High	0.6159
Previous Weekly Low	0.5927
Previous Monthly High	0.6176
Previous Monthly Low	0.5843
Daily Fibonacci 38.2%	0.6181
Daily Fibonacci 61.8%	0.6201
Daily Pivot Point S1	0.6141
Daily Pivot Point S2	0.6103
Daily Pivot Point S3	0.6057
Daily Pivot Point R1	0.6226
Daily Pivot Point R2	0.6272
Daily Pivot Point R3	0.631

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.