FxWirePro: NZD/USD struggles to extend gains, focus on NFP data for further direction

NZD/USD chart on Trading View used for analysis

• NZD/USD has retraced dip below cloud overnight, but the pair is struggling to extend gains today.
   
• We see doji formation on the daily candle till now, price hovers around 5-DMA.
   
• Upbeat China's Caixin Services PMI for December which printed at 53.9 against 52.9 expected failed to lend support.
   
• The pair also ignored rise in GDT price auction on Thursday, all eyes now on the crucial U.S.NFP data for further impetus.
   
• Upbeat ADP report has raised expectations of the upside surprise in Friday’s non-farm payroll report. Market forecast for NFP of 177K.
   
• Upbeat data could put a bid under the dollar, adding to downside pressure on the pair.
   
• Break below daily cloud could see weakness till 78.6% Fib at 0.6541. While on the upside, decisive close above 5-DMA could see test of 200-DMA.

Support levels - 0.6689 (5-DMA), 0.6654 (cloud base), 0.66

Resistance levels - 0.6689 (5-DMA), 0.6745 (nearly converged 21, 55 and 110-EMA), 0.6811 (200-DMA)