NZD/USD has been quite impressive with the recent non-volatile bearish gains recently. As a result, the price resided at the edge of 0.6700 area. As of the holidays, NZD had no economic reports to support its counter momentum against USD which is being supported by the market sentiment against NZD due to recent rate hike and optimistic view of the Fed.
This week NZD did not have any impactful economic reports or events to deviate the market sentiment towards it. As NZD has been underperforming with the earlier economic reports, market bias is currently against the currency.
On the USD side, recently the US CB Consumer Confidence report was published with a decrease to 128.1 from the previous figure of 136.4 which was expected to be at 133.7. The worse economic reports added to more weakness for the currency in the process. Today the US Pending Home Sales report is going to be published which is expected to increase to 0.9% from the previous value of -2.6% and the Natural Gas Storage is expected to increase to -50B from the previous figure of -141B.
As of the current scenario, despite having worse economic reports and mixed expectations of the upcoming economic reports results, USD gained momentum quite consistently against NZD which indicates the severe weakness of NZD in the process. Ahead of the NFP report next week, any worse economic reports on USD and positive economic reports on NZD may lead to certain bullish pressure in the process resulting in retracement.
Now let us look at the technical view. The price is currently being held by the support of 0.6700 area along with the dynamic support area of Kumo Cloud which is expected to lead the price higher towards 0.6950-0.70 resistance area in the coming days. As the price remains above 0.6700 area with a daily close, the bullish bias is expected to continue.
SUPPORT: 0.6500, 0.6700
RESISTANCE: 0.6950, 0.70
BIAS: BULLISH
MOMENTUM: VOLATILE
