NZD/USD eases-off 2-week tops at 0.7340

Dhwani Mehta FXStreet

The bullish pressure behind NZD/USD lost steam in the European morning, now driving the rate slightly away from two-week highs clocked at 0.7340 in the last hour.

NZD/USD retreats on lower Oil

Currently, the NZD/USD pair now gains +0.62% to 0.7318, having breached the key support of 5-DMA (0.7324). The Kiwi stalled its recovery from 100-DMA just below the mid-point of 0.73 handle, as renewed weakness in the black gold weighed on the resource-linked NZD. Further, minor-recovery attempts seen in the US dollar against its major peers, also dampened the sentiment around the major.

Meanwhile, markets moved past hawkish comments from RBNZ Governor Wheeler, as focus now shifts towards the US macro updates due later today ahead of the much-anticipated NZ trade balance due Wednesday.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7340/47 (daily high & R2), above which it could extend gains to 0.7400 (round number). To the downside immediate support might be located at 0.7296 (20-DMA) and from there to at 0.7269/67 (50 & 100-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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