NZD/USD Price Analysis: Probes short-term key resistance near 0.6625
- NZD/USD holds on to recovery gains after upbeat New Zealand CPI ignores weaker than forecast Credit Card Spending data.
- The monthly falling trend line, 23.6% Fibonacci retracement limit immediate upside to 21-day SMA.
- 38.2% Fibonacci retracement, 200-day SMA keep sellers away.
NZD/USD stays positive while trading around 0.6615 during the early Friday. The pair showed no major response to weak Credit Card Spending from New Zealand as major attention was given to the early-day release of Q4 CPI that pleased buyers.
Following better than forecast readings of New Zealand’s fourth quarter (Q4) CPI data, December month Credit Card Spending from the nation slipped below 4.3% forecast to 3.4%.
That said, the pair currently confronts short-term key resistance confluence around 0.6625 that encompasses a falling trend line since December 31 and 23.6% Fibonacci retracement of the pair’s rise from early-October to December-end.
Should NZD/USD prices manage to register a daily closing beyond 0.6625, further recovery to a 21-day SMA level near 0.6650 can’t be ruled out. Also on the bulls’ radar will be the January 16 top near 0.6665 and December 31 high of 0.6756.
Meanwhile, sellers will look for entry below the latest lows close to 0.6580. In doing so, a 38.2% Fibonacci retracement level of 0.6543 and 200-day SMA at 0.6512 now, will become their favorites.
NZD/USD daily chart
Trend: Pullback expected