Dollar keeps firmer ahead of European morning tradepetar skakalov
NZD/USD is a pair to take note of as sellers try to seize near-term control .
The dollar is seen gaining across the board a little.
The gains are rather modest for the time being, with EUR/USD seen lower to 1.1761 but holding within a 32 pips range to start the day. Meanwhile, USD/JPY is inching just above the 105.00 handle to 105.25 currently.
Despite the gains, it isn’t suggestive of any real shift in momentum in the greenback for now but NZD/USD is a pair to take note of as sellers try to seize near-term control.
The kiwi in itself isn’t really in a good spot with economic data continuing to stay more subdued and there is growing expectations for the RBNZ to retain a more dovish outlook ahead of next month’s policy meeting on 12 August.
Business confidence data is starting to show signs that the recovery is topping out and the RBNZ will surely push back against extensive kiwi gains as that may threaten to derail any potential progress on the inflation front.
Price action is now starting to creep below the 200-hour MA (blue line) and that will allow sellers to seize back near-term control but there is some support close by @ 0.6633.
Further below, the region around 0.6615-25 will also be one to watch and sellers will have to chase a move below that to establish more downside momentum.
As for buyers, the 31 December high @ 0.6756 remains the key challenge that they must break through in order to extend the upside range but a fall back under 0.6600 will be a setback to the recent swing move since the start of the month.
Source: Technical analysis