NZD/USD: bearish bias towards 200-D SMA, or 0.7200 to hold?
- NZD/USD headed for a test below 0.7200?
- 200-D SMA eyed.
NZD/USD was in a chop around the 55-D SMA again overnight within a narrow range, currently, NZD/USD is trading at 0.7226, down -0.01% on the day, having posted a daily high at 0.7230 and low at 0.7224.
opening around 0.7230 in the US shift, NZD/USD was subject to positive flows in the greenback and came under pressure as commodities crumbled.
However, there was a rally in risk with the yen weakening off, lifting the cross and the bird made a session high of 0.7242 only to slide back to the opening price as the dollar finds demand once again.
"The kiwi chopped about in a relatively narrow range overnight, generally ignoring stronger equity market sentiment. It is looking a little tired and we maintain a near-term downside bias, but that narrow-range is likely to persist during today’s session," explained analysts at ANZ.
Risks ahead?
For the session ahead, there are no domestic risks although the Aussie retail sales and RBA rate decision could push some flows through AUD/NZD, while otherwise, US and Chinese data later in the week will be eyed.
NZD/USD
Technically, the chart is leaning bearish with repeated recovery failures. Daily RSI biased down and pair back below the 50-Day SMA at 0.7257. However, the consolidation has left the price exposed below the descending trend line and unless the bears can break 0.7200, the bird could be sent below 0.7200 revealing the 200-D SMA (0.7173) and 0.7180 as being a key support to the downside.