Looking at the benchmark NZD/USD Forex market and above daily MT 4 price action chart, the New Zealand dollar is trading near last week’s high price point at 0.7070 during Tuesday Asian trade session.
Price action is also trading just below the one hundred (100) day exponential moving average (EMA) along with a positive momentum indicator (MACD).
Sentiment linked currencies like the New Zealand dollar could come under pressure as financial market participants and Forex traders react to coronavirus pandemic (Covid-19) headlines out of the European Union.
New Covid-19 cases out of China are also being eyed closely by the financial markets. This could help boost safe haven assets like the American greenback at the expense of the Kiwi dollar.
Overnight into Wednesday, New Zealand dollar traders will watch ANZ commodity prices data and Japan’s monthly leading indicators. During the day, today, Spain will publish their monthly unemployment change. Italy, will release their monthly labor data as traders will look at their unemployment rate.
The European Union will release the private monthly Sentix consumer confidence survey. The United States will release their monthly JOLTS jobs openings from the Labor Department.
Daily New Zealand Dollar Technical Analysis (NZD/USD)
Looking at the above NZD/USD price action chart, both the 14 day MACD momentum indicator and the relative strength index (RSI) are positive and not signaling overbought price conditions. This could be good for the NZD/USD bulls.
The 100 day exponential moving average is the first upside barrier to watch in play at 0.7075. The next layer of technical resistance at a downward sloping trend line at 0.7105 then comes into play. A daily close above 0.7105 opens the door for 0.7120 next. Above that, the 18 March high price at 0.7270 then comes into view.
On the downside, initial support lines up at 0.7020 before the key psychological level of 0.70 comes into play. A sustained close below 0.70 opens the door to challenge the technical support at 0.6943.