FxWirePro: NZD/USD edges closer towards 200-week MA support, focus on US NFP data for further impetus
FxWirePro: NZD/USD snaps 7-day winning streak, retraces below 0.72 mark
NZD/USD chart - Trading View
NZD/USD was trading 0.32% lower on the day at 0.7175 at around 08:50 GMT.
The major snaps 7-day bullish streak and has retraced from fresh 4-month highs at 0.7218.
Concerns about a credit crunch in China's real estate sector dented investors' appetite for riskier assets.
A softer risk tone, recent runaway rally in the US Treasury bond yields benefitted the safe-haven USD and added downside pressure on the pair.
That said, rising bets for an additional RBNZ rate hike to curb stubbornly high inflation, likely to keep downside limited.
NZD/USD trades with a bullish technical bias. Upside price action has been reinforced after channel breakout on Tuesday's trade.
Major Support Levels:
S1: 0.7136 (5-DMA)
S2: 0.7097 (200-DMA)
S3: 0.7057 (38.2% Fib)
Major Resistance Levels:
R2: 0.7196 (200-month MA)
R1: 0.7212 (61.8% Fib)
Summary: NZD/USD hovers near major resistance at 200-monthly moving average at 0.7196. Momentum is bullish, watch out for decisive break above 0.72 for further gains.