NZD/USD Holds Near-Term Range, Dips to 0.6725 100-DMA Support

NZD/USD Holds Near-Term Range, Dips to 0.6725 100-DMA Support

27 May 2016, 10:07
Roberto Jacobs

NZD/USD Holds Near-Term Range, Dips to 0.6725 100-DMA Support

The NZD/USD pair was once again rejected from 0.6760-70 immediate resistance zone and has now turned negative to currently trade at session low, near 100-day SMA region.

The pair remains struck within a 7-day trading range around 100-day SMA, awaiting for fresh impetus to determine the next leg of direction move. On Wednesday, the pair did attempt to move higher but the up-move got sold into after better-than-expected US economic data and hawking comments from Fed Governor Jerome Powell.

Traders would now take cues from today's revised US GDP print for Q1 2016, which would be one of the important macro releases, ahead of next week's NFP data, before a two-day Federal Reserve monetary policy meeting in June. As the Fed continues to monitor the incoming data, in order to determine its monetary policy stance, today's GDP release could have a lasting effect on the greenback and could eventually trigger the trading range break-out for the NZD/USD pair.

Technical levels to watch

Below 100-day SMA immediate support near 0.6720, the pair is likely to take support at 0.6700 round figure mark, which if broken decisively now opens rooms for an immediate downfall towards 0.6670 horizontal support and the fall could further get extended towards 0.6650 level.

On the upside, 0.6760-65 remains immediate key resistance to clear, which if conquered seems to assist the pair to extend its recovery trend towards 50-day SMA resistance near 0.6825-35 region.


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