FxWirePro: NZD/USD holds marginal gains on upbeat New Zealand trade numbers, Fed decision, US Jan employment data crucial for direction

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.22% higher on the day at 0.6502 at around 10:40 GMT. 

Previous Week's High/ Low: 0.6525/ 0.6437

Previous Session's High/ Low: 0.6511/ 0.6461

Fundamental Overview:

New Zealand’s headlines Trade Balance printed at $-475M MoM for December versus $-2,108M prior while the yearly figure rose to $-14.46B compared to $-14.98B previous readings.

Further, New Zealand Imports eased to $7.19B compared to $8.52B whereas the Exports increased to $6.72B for December compared to $6.34B prior.

Last week’s mostly upbeat US statistics and caution ahead of this week’s Federal Reserve (Fed) decision keep upside limited.

US NFP data for January and China’s January official activity numbers will also be crucial for near-term directions.

Technical Analysis:

- GMMA indicator shows major and minor trend are bullish

- Momentum is bullish, volatility is high and rising

- Price action is above cloud and Chikou span is biased higher

- MACD and ADX support upside in the pair

Major Support and Resistance Levels:

Support - 0.6490 (5-DMA), 0.6418 (21-EMA)

Resistance - 0.6509 (110-week EMA), 0.6562 (Upper BB)

Summary: NZD/USD trades with a bullish technical bias. But, price action finds stiff resistance at 110-week EMA. Decisive break above required for upside continuation.