The pair witnessed aggressive selling during the early part of the trading on Thursday and extended the overnight pullback from over one-month high, touched in reaction to a more hawkish RBNZ outlook. The worsening situation in Ukraine triggered a massive sell-off across the global equity markets, which boosted the safe-haven US dollar and weighed heavily on the perceived riskier kiwi.

The NZD/USD pair, however, managed to find decent support near the 0.6700 mark, which should now act as a pivotal point for short-term traders. That said, any meaningful upside seems elusive as geopolitical tensions would keep investors on edge and benefit the safe-haven buck. That said, bears are likely to wait for sustained break below the aforementioned handle before placing fresh bets.

Despite taking a U-turn from 0.6810, NZD/USD keeps the early-week breakout of the 50-DMA and a descending trend line from October 2021, respectively around 0.67360 and 0.6715. Hence, the pair buyers may remain hopeful until witnessing a clear downside break of 0.6715.

The NZD/USD is neutral biased, though it is trading above the 50-day moving average (DMA) at 0.6724, signaling that an uptrend would accelerate but would be subject to Friday’s daily close above the former.

IF that scenario plays as planned, the NZD/USD would be exposed to upward pressure. That said, the NZD/USD first resistance would be the February 23 high at 0.6809. Once cleared, the following resistance level would be the 100-DMA at 0.6850. Breach of the latter would expose January 13 daily high at 0.6890.

Kiwi Hopeful Above 0.6700 Support Zone

Feb 27 2022