FxWirePro: NZD/USD holds above strong support at 0.6880, good to buy dips
Broad based US dollar strength and downbeat NZ business confidence data adds to bearish pressure on the bird. ANZ NZ business confidence 3.2% in March vs 7.1% in February. NZ own activity outlook for March 29.4% vs 25.5%…
Broad based US dollar strength and downbeat NZ business confidence data adds to bearish pressure on the bird.
ANZ NZ business confidence 3.2% in March vs 7.1% in February. NZ own activity outlook for March 29.4% vs 25.5% in February.
Tumbling commodities’ prices, particularly oil and copper prices, also weighed on the resource currency.
US oil is down -1.25%, Brent slides -0.90%, while the copper prices shed 0.55%.
NZD/USD paused its 3-day rally to multi-month tops at 0.6965 and now extends the retreat below the 0.69 handle.
On the technical side, the pair has closed above strong resistance at 0.6880 on Wednesday's trade, and is currently holding above that level.
Indicators suggest upside for the pair, we see a bullish 5-DMA crossover on 10-DMA, Stochs and RSI are biased north and momentum positive on the MACD indicator.
Immediate support lies at 0.6880 (trendline resistance turned support), while resistance is located at 0.6924 (June 25th highs) and then 0.6965 (Mar 30th highs) ahead of 0.70.
