NZD/USD: turning away from 21-D SMA and testing key support line

NZD/USD has been consolidating above the descending the prior channel's resistance and above the 4hr 100 & 10 SMA at 0.6830 and 0.6838 but remains below 0.6868/21-D SMA. However, the greenback is evidently stronger and is exposing levels below the hourly support line developed in early July trade. Currently, the bird is trading at 0.6837, with a high of 0.6859 and a low of 0.6829.

The reversal of the supply of the June business less convincing

The bird has been in a reversal of the supply of the June business up at 0.7060 having broken up through the descending channel's resistance on the 4th July and not looking back since. "We believe positioning in the NZD has likely become cleaner, and therefore we’d look to start fading this recent move higher," analysts at ANZ argued.

Meanwhile, for the day ahead the June ANZ Truckometer comes in at 10 am local time for NZ, then June electronic cards transactions at 10:45 am and the June Monthly Inflation Gauge at 1pm. 

NZD/USD levels

0.6770 is the key support while 0.6860 remains as the first key upside target to break. 0.6920 is a line in the sand, that if broken, puts the bulls back in control and the June highs will be up for grabs. However, bulls really need to get above the 200-month moving average resistance at 0.7007 because longer-term technicals remain bearish. 0.6787 is where the 10-D SMA is located, back in the descending channel, a few pips above last week's closing daily stick's low.