NZD/USD struggles for direction, holds steady above mid-0.7100s

NZD/USD met with some fresh supply on the primary day of a replacement trading week.
A subdued USD demand, the risk-on mood helped limit losses for the main.
Monday’s US ISM PMI and Powell’s speech eyed for a few trading impetuses.
The NZD/USD pair remained on the defensive through the first European session and was last seen hovering near daily lows, just above mid-0.7100s.

The pair struggled to maximize its modest bullish gap opening on the primary day of a replacement trading week, instead met with some fresh supply near the 0.7185 regions. Bears might now be looking to increase last week’s sharp retracement slide from the very best level since early March, though a mixture of things helped limit the downside, a minimum of for now.

The US dollar struggled to maximize last week’s goodish rebound from rock bottom level since February 26 amid expectations that the Fed will keep interest rates low for an extended period. This, alongside the prevalent risk-on mood round the equity markets, further undermined the safe-haven USD and extended some support to the perceived riskier kiwi.

Hence, it’ll be prudent to attend for a few strong follow-throughs selling below Friday’s swing lows, around mid-0.7100s, before positioning for any longer depreciating move. Market participants now anticipate the discharge of the US ISM Manufacturing PMI. This, alongside Fed Chair Jerome Powell’s scheduled speech, will provide a fresh impetus to the NZD/USD pair.

Technical levels to observe
Today last price 0.7162
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.7164

Daily SMA20 0.714
Daily SMA50 0.7153
Daily SMA100 0.716
Daily SMA200 0.6942

Previous Daily High 0.7256
Previous Daily Low 0.715
Previous Weekly High 0.7287
Previous Weekly Low 0.715
Previous Monthly High 0.7287
Previous Monthly Low 0.6945
Daily Fibonacci 38.2% 0.719
Daily Fibonacci 61.8% 0.7215
Daily Pivot Point S1 0.7124
Daily Pivot Point S2 0.7084
Daily Pivot Point S3 0.7019
Daily Pivot Point R1 0.723
Daily Pivot Point R2 0.7295
Daily Pivot Point R3 0.7335

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