NZD/USD Inches Higher to 0.6850 ahead of NFP Release
Maintaining its strong bid tone, the NZD/USD pair continues to inch higher and is now attempting to build on to its gains beyond 50-day SMA.
Currently trading around the mid-point of 0.6800-0.6900 handle, bulls seem to be in full control as we head into the much awaited NFP data. A strong headline NFP print supported by anything above expected wage growth would present a good opportunity for the US Federal Reserve to hike interest rates in June and thus would turn-up to be supportive for the US Dollar.
Reversal from immediate resistance area might now accelerate the fall, forcing bulls to unwind their bearish USD bets and thus dragging the NZD/USD pair sharply lower.
Technical levels to watch
On the immediate upside, 0.6900 round figure mark might act as immediate resistance ahead of resistance near 0.6920 horizontal zone. Meanwhile, immediate downside now seems to be protected around 0.6820-15 zone, which is closely followed by 0.6800 round figure mark support. Rejection below 0.6800 handle would increase the pair's vulnerability to continue drifting lower towards its next major support near 0.6735 area.