NZD/USD stuck in a rut below 0.70 ahead of a thin Tuesday

Kiwi stuck in place as traders await meaningful inspiration.
The NZD's technical correction looks to be over as the pair sinks closer towards the May bottom.

Joshua Gibson FXStreet

The NZD/USD is flat heading into Asia trading, sticking close to 0.6930 after cycling near similar levels through Monday's action.

The NZD slumped against the USD late last week, shrugging off the pair's recent technical correction after getting capped off by resistance near the 0.7050 level.

It's a very thin week for the Kiwi on the economic calendar, and nothing of note is slated to occur until Wednesday sees first-quarter GDP figures for the NZD at 21:45 GMT. The NZ GDP is expected to clock in at 0.5%, a slight tick below the last reading of 0.6%. Global Dairy Trade price index figures are also expected at some point on Tuesday, and the index last came in at -1.2%.

NZD/USD levels to watch

As noted by FXStreet's Eren Sengezer, "despite today's uninspiring movement, the RSI indicator on the daily chart remains below the 50 mark, suggesting that seller could remain in control. 0.6925 (May 9 low) could be seen as the first technical support ahead of 0.6850 (May 16 low) and 0.6800 (psychological level). On the upside, resistances align at 0.7000 (psychological level/50-DMA), 0.7060 (Jun. 6 high) and 0.7100 (psychological level/200-DMA)."

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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