NZD/USD consolidates below key resistance post U.S. risk-rally
NZD/USD was able to extend its recovery on a better risk environment overnight, rallying from 0.7309 to recent highs of 0.7360 in a minor recovery.
Global markets recovered after last week's sell-off that was fuelled by concerns over Central Banks. The Fed’s Brainard was more dovish than expected and enabled the antipodeans to climb higher along with Wall Street and risk on asset classes across the board. For the day ahead, we have Chinese industrial production; fixed asset investment; and retail sales are all due.
NZD/USD levels
NZD/USD has seen a recovery through the 200 sma on the 1hr sticks located at 0.7345, but is some way off the key resistance at 0.7387 (Daily Classic R1) head of 0.7395 (Hourly 100 SMA). Next support to the downside can be found at 0.7353 (Daily Open), 0.7351 (Daily Classic PP), 0.7348 (Daily Low), 0.7344 (Hourly 200 SMA) and 0.7334 (Hourly 20 EMA). Regarding candlestick formations, we can see Piercing Line formation on the 1-hour.