- Kiwi better bid, tracking the 0.5 percent rise in the S&P 500 futures.
- The uptick in the spot adds credence to Friday’s long-legged doji.
The NZD/USD pair is trading on the front foot, attempting a convincing break above the 55-day moving average (MA) hurdle of 0.7286, tracking the positive action in the S&P 500 futures.
As of writing, the spot is trading at a session high of 0.7290, having found bids around 0.7266 earlier today. Meanwhile, the S&P 500 futures are up 0.5 percent, indicating the stocks could regain poise following Friday’s drop. Consequently, the risk assets are better bid this Monday morning in Asia.
Bulls need a close above 0.7322
A positive follow-through to Friday’s long-legged doji is encouraging, however, bulls will likely want to see the pair close above 0.7322 – April 5 high before flexing their muscles. That said, the burden of pushing the spot above the key hurdle is on stocks.
NZD/USD Technical Levels
A close above 0.7322 (April 5 high) would open up upside towards 0.7355 (March 13 high) and 0.74 (psychological level). On the downside, breach of support at 0.7256 (10-day MA) could yield a pullback to 0.72 (psychological level) and 0.7186 (March 1 low).