NZD/USD: bulls need to stay above the 21-D SMA
- NZD/USD better bid above descending daily resistance.
- NZD/USD next target is 0.7300 double top area.
NZD/USD had been on the backfoot entering European markets after the rally to 0.7263 was capped and profit-taking emerged on a resurgence in the greenback. The European low was 0.7243 before a bounce to 0.7270. Currently, NZD/USD is trading at 0.7263, up 0.27% on the day, having posted a daily high at 0.7272 and low at 0.7195.
NZD/USD met selling again on the back of the drop in Wall Street yesterday but has since managed a strong recovery with signs that NAFTA and also relations between China and the US in respect to trade wars are being ironed out. The GDT price index was down -0.6% although whole milk powder +1.6% to $3278/MT.
Latest on trade wars:
The latest developments there have been positive albeit, the market feels that these tensions will be the new norm. America’s waiting period before officially implementing its most severe tariffs and China’s decision to not include such items as soybeans and aircraft in its initial package of counter tariffs indicate a willingness on both sides to negotiate," analysts at National Bank of Canada argued.
NZD/USD levels
The break of the descending daily resistance line is a positive for bulls and the RSI has spiked towards more positive territory with momentum behind the bid. This break and hold above the 21-day MA at 0.7253 will also be a positive for the bulls for the start of the month. The next target is 0.7300 double top area. A deeper support comes in at the March 21 trend low at 0.7156.