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NZD/USD: 20-day MA is tough nut to crack

7/19/2018, 10:32:01 AMMarket Analysis
NZD/USD: 20-day MA is tough nut to crack

The NZD is having a tough time scaling the 20-day MA resistance is holding, despite Wednesday's bull hammer-like candle.

At press time, the currency pair is trading at the 20-day MA of 0.6798, having clocked a session high of 0.6806 earlier today. 

The Kiwi has persistently found bids around 0.6750 over the last few days, but a close above the 20-day MA has remained a distant dream. Hence, a daily close above the MA hurdle is necessary to create further upward pressure on the NZD exchange rate. 

Trade tensions linger

The Trump administration is reportedly getting closer to a deal with Mexico. However, talks with China have stalled, according to White House economic adviser Larry Kudlow.

Consequently, Kiwi and other commodity dollars could continue to struggle against the USD - the new safe haven. 

NZD/USD Technical Levels

A close today above the 20-day MA would add credence to yesterday's bullish hammer and would allow a rally to 0.6890 (Upper Bollinger band). 

Resistance: 0.6798 (20-day MA), 0.6859 (July 9 high), 0.6890 (upper Bollinger Band). 

Support: 0.6787 (session low), 0.6725 (July 13 low), 0.6688 (July 3 low).