NZD/USD pushes back above 0.7200 going into European morning trade
After having fallen back to 0.7100 at the start of trading last week, the pair found its footing and pushed back higher but failed to hold a close on Friday above 0.7200 after having seen buyers seize back near-term control in the previous day.
That said, despite stalling at around 0.7223-25, buyers kept near-term control by defending the 200-hour moving average (blue line) during the drop on Friday and are maintaining a modest push higher again to start the new week.
Price is now targeting minor resistance at around 0.7223-25 again and that will be followed by the 13-14 January highs around 0.7240.
Those will be key upside levels that buyers will have to chew through in order to try and retest the 0.7300 handle again moving forward.
The kiwi is benefiting from the more positive risk tones so far today, but the dollar side of the equation may arguably be the key driver in trading this week.
The greenback is on the back foot today and will surely take further clues from what the Fed has to offer in the upcoming FOMC meeting on Wednesday.
The topside risk levels are clearly defined as per the above, with downside risk levels seen at the confluence of the key hourly moving averages @ 0.7168-72.
