NZD/USD prints gains on Thursday in the initial European trading hours. The pair recovered from the lows of 0.7151 and touched the high of 0.7180. At the time of writing, NZD/USD is trading at 0.7177, up 0.14% for the day. Although hopes of the heavy rate hike by the Reserve Bank of New Zealand (RBNZ) and carry trade keep NZD/USD afloat, recently soft data at home join cautious mood to weigh on the quote of late. New Zealand (NZ) Trade Balance shrank more than $-2139M (revised) prior to $-2171M in September to mark the all-time low MoM figures. However, the Imports and Exports were better than their previous readouts as the former rose past $6.495 billion to $6.57 billion whereas the latter grew to $4.4 billion versus $4.351 billion.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the daily chart, the NZD/USD pair has been on the bull run since October 13, after testing the low of 0.6911. The spot faces pressure near 0.7220, critical resistance zone.

A daily close above the psychological 0.7200 level would meet the next resistance level at 0.7220. The Moving Average Convergence Divergence (MACD) indicator trades in an oversold zone. Any uptick in the MACD could trigger more buying opportunities in the pair to reach the 0.7250 horizontal resistance level.

Next, the bulls would be moving in a fresh upside momentum to recapture the high of May 31 at 0.7285.

Alternatively, if the price breaks below the intraday low it could test the 0.7120 horizontal support level followed by the low of October 19 at 0.7079. The NZD/USD bears would next target the 0.7050 horizontal support level.

NZDUSD

Oct 28 2021