NZD/USD struggles to break through 0.6440-45 horizontal resistance

A slight deterioration in the global risk sentiment exerts some pressure.
The USD further extracts additional support from rising US bond yields.
US-China trade optimism seemed to help limit any meaningful downside.

Haresh Menghani FXStreet

The NZD/USD pair failed to capitalize on the early uptick to near four-week tops and is currently placed at the lower end of its daily trading range, still comfortably above the 0.6400 handle.

The pair continued with its struggle to make it through the 0.6440-45 horizontal resistance, with a slight deterioration in the global risk sentiment benefitting the US Dollar's safe-haven status and driving some flows away from perceived riskier currencies - like the Kiwi.

Risk-off mood/a modest USD strength weigh

Adding to this, a modest pickup in the US Dollar demand, supported by a follow-through uptick in the US Treasury bond yields, exerted some additional downward pressure and collaborated to the pair's intraday pullback of around 20-pips, though bears seemed lacking strong conviction.

The recent optimism over the resumption of the US-China trade negotiations, confirmed by the US President Donald Trump on Monday, might continue to lend some support to commodity-linked currencies and turn out to be one of the key factors that should limit deeper losses.

There isn't any major market-moving economic data due for release on Tuesday and hence, the broader market risk sentiment, coupled with the USD price dynamics might continue to act as key determinants of the pair's momentum and produce some short-term trading opportunities.

Technical levels to watch

NZD/USD

Overview
Today last price	0.6424
Today Daily Change	-0.0003
Today Daily Change %	-0.05
Today daily open	0.6427

Trends
Daily SMA20	0.6385
Daily SMA50	0.6532
Daily SMA100	0.656
Daily SMA200	0.668

Levels
Previous Daily High	0.6445
Previous Daily Low	0.6412
Previous Weekly High	0.6444
Previous Weekly Low	0.6269
Previous Monthly High	0.659
Previous Monthly Low	0.6283
Daily Fibonacci 38.2%	0.6432
Daily Fibonacci 61.8%	0.6425
Daily Pivot Point S1	0.6411
Daily Pivot Point S2	0.6395
Daily Pivot Point S3	0.6378
Daily Pivot Point R1	0.6444
Daily Pivot Point R2	0.6461
Daily Pivot Point R3	0.6477

Author

Haresh Menghani

FXStreet

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

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