NZD/USD: a quiet session ahead of US CPI, looking for a breakout?
- NZD/USD leaning bearish.
- NZD/USD needs to get above descending resistance at 0.7320.
NZD/USD is technically leaning bearish while the European high on the 0.73 handle was rejected twice by the hourly-descending resistance line at 0.7320. Currently, NZD/USD is trading at 0.7294, down 0.00% on the day, having posted a daily high at 0.7297 and low at 0.7293.
Kiwi's price action
NZD/USD opened in NY at 0.7310 but bear pressures continued with yen crosses putting the higher betas into a stranglehold and a firmer dollar going to work on the downside as well. NZD/USD mad a low of 0.7285 before a bid into the close to bring the price up to a more respectable 0.7290 level for the handover in early Asia.
Analysts at ANZ explained that it is likely to be a relatively quiet session again today, with markets gearing up for the US CPI print tonight. "An upside surprise could certainly lead to some currency volatility," the analysts added.
DXY underwater on nonfarm payrolls, but, watch the Libor/ OIS spread
NZD/USD levels
Technically, there is an argument that the chart is still leaning bearish with repeated recovery failures on the 0.73 handle. The long upper wick on the daily sticks and the inability to hold above 21-D SMA weigh as well. A break above the 21-D SMA, (0.7296), would need to get through the descending resistance line at 0.7320 in order to open the way to 0.7360 as the key upside target in the near term to open a run towards 0.7435 daily high double top.