NZD/USD recovery may have more to go to test 200 SMA

FXStreet (Guatemala) - NZD/USD is currently trading at 0.6351 with a high of 0.6394 and a low of 0.6288.

NZD/USD has been recovering from the lows seen last week down at 0.6240 and has penetrated the 200 SMA on the hourly, but remains in a better offered trend below the 200 DMA and capped by the 50 DMA at 0.6464 today.

Asian risk-off mood kept the kiwi subdued, but an early pick up in the European markets lent support to the bird while at the same time, a recovery in commodity created demand in the commodity bloc currencies.

NZD/USD awaits data

There has been a lack of data from the NZ economy this week so far, with only building permits and ANZ Business Confidence to come from tonight's Asian market.

However, there is the possibility of a pick-up in business confidence die to the re-bound in dairy prices. We await the main event at the end of the week for a decent impact on price and that should come from Nonfarm Payrolls.

NZD/USD levels

Technically, the 200 SMA on the hourly and the 20 DMA have been key areas at 0.6334 and 0.6332 respectively. A break of the 4hr 200 SMA at 0.6403 would stand the bird in good stead for a continuation of the recovery and it will be the first time the 200 SMA on the same time frame has been breached since late August.

MACD on the same time frame is less negative back to the mid point turning positive with RSI (14) breaching 50 and headed north allowing for further upside.
For more information, read our latest forex news.