NZD/USD has been quite volatile recently on the way to retesting the resistance area of 0.7370-0.7460. Yesterday, NZD has lost grounds due to positive economic reports from the United States which lead to more volatility in this pair recently. New Zealand posted a positive PPI input report published yesterday at 1.4% which previously was at 0.8% and expectation was at 0.9%. At the same time, the PPI Output was als positive at 1.3% which was expected to decrease to 0.7% from 1.4%. However, the currency has gained quite impulsively in the early hours of the market but could not sustain it long enough. On the other hand, today the Prelim UoM Consumer Sentiment report is going to be published which is expected to show a slight increase to 94.0 from the previous figure of 93.4. If the report shows a better than expected result, then we might see more bearish pressure in this pair in the coming days. NZD has been quite positive with the economic reports recently but could not maintain gains long enough against USD, which indicates that USD is stronger than NZD despite the variation of economic report effects.
Now let us look at the technical view. The price is currently proceeding higher with a target towards the resistance area of 0.7370-0.7460 but in a volatile corrective structure. The price is currently expected to reject the resistance area and then proceed lower towards 0.7050 support level in the coming days. As the price remains below the resistance level of 0.7460, the bearish bias is expected to continue further in the coming days.
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