NZD/USD: bears move in on the 1hr 200 sma key support

Currently, NZD/USD is trading at 0.7012, down -0.28% on the day, having posted a daily high at 0.7055 and low at 0.7010.

US debt ceiling back in focus - Nomura

NZD/USD has filled the bullish gap and has extended below the closing price on Friday's business down to test the 200 ema on the hourly sticks at 0.7010. For the week ahead, the US data to watch comes with the durable goods and the first estimates for Q1 GDP.  The kiwi has little in the way of domestic events but the NZ trade balance is a risk. The focus will be on Trump's plans for tax reform, Congress meeting to discuss the debt ceiling and in general,  the divergence between the Fed and RBNZ with the Fed’s tightening cycle remaining as a key focus should maintain upside pressure on US interest rates and the US dollar.

NZD/USD levels

A break of the aforementioned 200 ema on the hourly sticks guards the 0.7000 psychological level. 0.6933/50 then comes into play and the 13th March resistance falls in as first support. Should the momentum kick in, a break of the 0.69 handle opens up the 0.6885 mark as being the recent lows guarding 0.6675 as the 29th May 2016 on a break of the 0.67 handle. On further bids, however, the 17th April highs of 0.7035 guard 0.7060/70 and recent high today around the 200-d ema (0.7067). There is a double bottom at 0.7130 as the mid-Feb lows.