NZD/USD struggling for direction below 0.7300 handle

Haresh Menghani FXStreet

The NZD/USD pair oscillated in a narrow trading band and has now managed to recovery from session low to currently trade in neutral territory.

Currently hovering around 0.7285 region, the pair was virtually unchanged from Wednesday's closing level and has failed to gain any impetus from US economic releases that showed upward revision of the GDP growth for the second quarter of 2016 and lower-than-expected rise in US weekly jobless claims, continuing to point towards steady improvement in the labor market.

Meanwhile, the greenback some of its gains after the disappointing release of pending home sales data that came-in to show a drop of 2.4% in August as compared to consensus estimates pointing to a flat reading.

The pair, however, remained stuck within daily trading range as traders now look forward to the release of Chinese services PMI during early Asian session on Friday.

Technical levels to watch

Immediate upside hurdle remains near 0.7300 handle, which if cleared seems to assist the pair further towards 0.7350-55 region. Meanwhile on the downside, weakness below session low support near 0.7255, and a subsequent break below 50-day SMA support near 0.7245-40 region, is likely to accelerate the slide towards weekly low support near 0.7220 level.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7167

0% Bullish
100% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 0.7118

36% Bullish
55% Bearish
9% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6972

8% Bullish
67% Bearish
25% Sideways

Bias Bearish

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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