The Kiwi is seen making attempts to take on the recovery as the NZDUSD pair is stuck in a range near 0.7300. Get more on the 5 February NZDUSD Technical Analysis.
5 February, GKFX – The NZD/USD pair ran into offers at Tokyo open, surrendering the 0.73 handle to now consolidate in a tight range near the last, as attention turns towards the key macro events lined up this week.
NZD/USD finds support near daily classic S1
The Kiwi is seen making attempts to take on the recovery back above the 0.7300 mark, as the US dollar came under renewed selling pressure amid a retreat in Treasury yields, with risk-off the main theme in Asia on tumbling equities and oil prices. The USD index dips to daily lows of 88.95, down -0.09% so far while Asian markets dive -1.50% to -2.50%.
Further, a sense of caution ahead of the critical NZ jobs and RBNZ rate decision keeps the traders on the back foot while downbeat New Zealand Treasury’s monthly report on economic indicators also added to the weight on the local currency.
However, the downside appears capped, as the bulls find some support from the solid Chinese services PMI data, as published by Caixin earlier today. China’s Caixin services PMI: A big beat on expectations. With the Chinese PMI data out of the way, the focus now remains on the US ISM services PMI release for fresh momentum on the prices.
5 February NZDUSD Technical Analysis
The pair finds next resistances at 0.7329/34 (5 & 10-DMA), at 0.7350 (psychological levels), 0.7405/06 (Feb 1 and 2 tops). Meanwhile, the supports are located at 0.7275 (daily classic S1), 0.7200 (zero figure) and 0.7165/60 (200 & 50-DMA).
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