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FxWirePro: NZD/USD consolidates below daily cloud, trades rangebound amid pre-NFP trading lull

NZD/USD chart - Trading View NZD/USD was trading in a narrow range on the day with session high at 0.7160 and low at 0.7132. The pair was consolidating break below daily cloud on Thursday's trade, scope for further weakn…

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FxWirePro: NZD/USD consolidates below daily cloud, trades rangebound amid pre-NFP trading lull
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NZD/USD chart - Trading View 

NZD/USD was trading in a narrow range on the day with session high at 0.7160 and low at 0.7132.

The pair was consolidating break below daily cloud on Thursday's trade, scope for further weakness.

Broad-based U.S. dollar strength after strong data overnight supports weakness in the pair. 

U.S. ADP private-sector labor market figures jumped by 978,000 in May, far better than expected and Unemployment Claims tumbled below 400,000. 

Further, ISM Services Purchasing Managers' Index beat estimates with 64 points, confirming strength in nation's largest sector.

The pair has found strong support at 110-EMA at 0.7130, break below will see further downside.

Next major support lies at 0.71 (Trendline). 55-EMA is immediate resistance at 0.7186. Retrace above cloud will change near-term dynamics. 

Focus now on the crucial Non-Farm Payrolls data for impetus. A disappointing NFP print is likely to trigger a significant dollar weakness. 

Strong ADP report points to an upbeat NFP for May. Non-Farm Payrolls are expected to print 650K versus 266K prior.
 

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