NZD/USD chart - Trading View
Technical Analysis: Bias Bullish
- NZD/USD was trading 0.32% higher on the day at 12:00 GMT
- Price action has broken above daily cloud and 200-DMA raising scope for further upside
- Momentum studies are bullish, Stochs and RSI are sharply higher, RSI is well above the 50 mark
- Volatility is high and rising as evidenced by widening Bollinger bands
- GMMA indicator shows strong bullish bias on the intraday charts
Support levels - 0.7112 (200-DMA), 0.7098 (cloud top), 0.7067 (5-DMA)
Resistance levels - 0.7144 (Upper BB), 0.7195 (76.4% Fib), 0.72
Summary: Markets cautious as they await the key non-farm-payrolls report. US NFP is expected to have added 750K new jobs in August, while the Unemployment Rate is expected at 5.2%, better than the previous 5.4%.
Powell had said last week if job growth continues, the central bank could start to cut its asset purchases this year, but would remain cautious in decision to raise interest rates. Any disappointment in the employment data could weigh on the greenback, driving further upside in the pair.
Technical indicators point to further gains. Break above cloud and 200-DMA reinforces upside. Scope for test of 76.4% Fib at 0.7195.
