Technical Analysis

NZD/USD buoyed as buyers search for break above key daily resistance levels

NZD/USD is lurking around the highs posted yesterday

ForexLive

The more steady inflation data earlier today is one of the reasons giving buyers some added confidence to start the session but ultimately, the daily close today will once again be key to gauge any further momentum to the upside in NZD/USD.

The high today reached 0.6738, the highest level since April but price is still hovering around the highs posted overnight at 0.6735 for the most part currently. The kiwi may be more buoyed but daily resistance from the 200-day MA (blue line) and the swing region around 0.6720-30 is still proving to be a tough spot for buyers to hold a break above.

If they can manage that today, it could lend further bids towards resistance next seen around 0.6764-83 (61.8 retracement level and mid-April highs).

For now, markets remain in a bit of a slow and steady mood with US futures and Treasury yields barely changed on the session. It’s part and parcel of the summer doldrums but also as the focus remains on central banks and trade/politics, so outright valuation trades are just not what markets are keen to look at right now.

Let’s see what the technicals will offer us later today. For any downside move, be wary of the 200-day MA @ 0.6718 as a continued rejection may see sellers start to find conviction to come back in and drive price lower.

There are a couple of key risk events still up ahead with US retail sales and industrial data still to come as well as the GDT dairy auction. Otherwise, I reckon we could see more choppy trading as NZD/USD holds at key resistance levels for the time being with traders seeking more clarity this week amid slower markets.

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