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FxWirePro: NZD/USD recovery lacks traction, trendline support at 0.6915 in sight

NZD/USD chart - Trading View NZD/USD was trading 0.08% higher on the day at 0.6970 at around 05:40 GMT. The major is extending marginal gains ahead of crucial US non-farm payrolls data, however, upside lacks traction. Te…

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FxWirePro: NZD/USD recovery lacks traction, trendline support at 0.6915 in sight
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NZD/USD chart - Trading View 

NZD/USD was trading 0.08% higher on the day at 0.6970 at around 05:40 GMT.

The major is extending marginal gains ahead of crucial US non-farm payrolls data, however, upside lacks traction.

Technical indicators support weakness. Price action has failed to extend gains above 200-DMA.

Upside remains capped at 5-DMA which is biased lower. Momentum is also bearish. Volatility is high.

Price action is below 200H MA. Analysis of GMMA indicator shows major and minor trend are strongly bearish on the daily charts. 

U.S. NFP is expected to rise from 559K to 690K in June. Markets expect US unemployment rate to drop from 5.8% to 5.6%.

Should the jobs report portray strong recovery in the US labor conditions, the push for Fed’s monetary policy adjustments will be stronger and favor the USD bulls.

The pair is on track to test major trendline support at 0.6915. 5-DMA is immediate resistance at 0.6988. Bearish invalidation above 200-DMA.
 

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