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).