NZD/USD has been quite volatile recently, struggling to reach the resistance level of 0.7370. This week, New Zealand has provided mixed economic reports which are the main reason behind the struggle of the bullish move in this pair now. Recently, NZ NZIER Business Confidence report was published with a rise to 18 from the previous value of 17 and ANZ Commodity price showed a decrease to 2.1% from the previous value of 3.2%. Today is an important day for USD as a batch of high impact economic reports are due later. Today, US Average Hourly Earnings report is to be published which is expected to show a slight increase to 0.3% from the previous score of 0.2%, Non-Farm Unemployment Change is expected to show an increase to 175k from the previous value of 138k, and the Unemployment Rate is expected to be unchanged at 4.3%. Besides, FED Monetary Policy report is also going to be published today which is expected to be hawkish as well. Though the economic calendar is packed with high impact data from the US today, any negative outcome of any report may lead to further gains on NZD in the coming days.
Now let us look at the technical chart. The price has recently bounced off the dynamic level support of 20 EMA and rejected the bears of the level. Amid the current volatility in the market, if the price remains above the 20 EMA there are higher chances of moving towards the resistance of 0.7370 in the coming days. On the other hand, if the price breaks below 20 EMA with a daily close, the bullish bias will come to end. A daily close today will signal a further move in this pair.
The material has been provided by InstaForex Company – www.instaforex.com