NZD/USD maintains its advance as buyers recapture near-term control

Technical Analysis

Author: Justin Low | nzdusd

NZD/USD trades at session highs around 0.6650 currently

NZD/USD H1 16-01
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The pair is maintaining some good momentum on the day as buyers push through the 200-hour MA (blue line) after several attempts to break above the level in Asia Pacific trade.

The kiwi is the best performing major currency today alongside the aussie as markets continue to digest the aftermath of the US-China trade deal.

The overall risk mood remains more mixed as European stocks pare earlier gains while bonds are again back to near flat levels during the session. US futures are keeping mild gains of around 0.3% though but that isn't really really reflected elsewhere.

For NZD/USD, the pair has been on a bit of a losing streak since the new year but has regained some poise today. Buyers are now in near-term control but are running into some minor resistance around the 13 January high @ 0.6653.

Further retracement is seen closer to the 50.0 retracement level @ 0.6668. The risk for any upside move now can be defined and limited by the key hourly moving averages.

In the bigger picture:

NZD/USD D1 16-01
Buyers still have more work to do in order to get back some upside momentum as seen during Q4 2019. A move back above 0.6700 would be a good start but without any firm catalysts, traders can only look towards the technical picture to justify that.

That said, I'd also keep a watchful eye on AUD/NZD as the pair now sits back above the 1.04 level - part of the reason driving the recent kiwi weakness.

With the RBA in focus soon enough and key Australian data set to follow next week, it could help the pair find a more meaningful move in the near-term.

That may help give traders additional help on how to navigate through current price action.

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