The NZD/USD’s downslide stalled just ahead of the hourly 200-SMA (0.6571) and the bulls fought back control somewhat, sending the Kiwi back above 0.66 handle.
NZD/USD supported by the oil price rally
Currently, the NZD/USD pair trades -0.14% lower at 0.6619, recovering sharply from session lows struck at 0.6575 in mid-Asia. The Kiwi stages a solid recovery and regain 200-DMA as the recovery in oil prices picked-up significant momentum and eased the risk-off environment, with markets now looking to take the yield advantage.
Amid a lack of relevant fundamental triggers in the session ahead, the oil price action will continue to drive the Kiwi. While Wednesday’s Fed Chair Yellen’s testimony and the US retail sales data due on Friday are likely to emerge the main risk event for this week.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6635/40 (50 & 100-DMA), above which it could extend gains to 0.6663/68 (Feb 8 & Jan 7 High) levels. To the downside immediate support might be located at 0.6571/51 (1h 200-SMA/ daily S2) and from there to 0.6526/07 (20-DMA/ Feb 3 Low).
(Market News Provided by FXstreet)