NZD/USD has retraced substantially since March 21st, as it was nearing the short-term major resistance level at 0.7100.
This morning, the bearish momentum was held above the significant psychological support line at 0.7000, where the 10 SMA converges (on the daily chart), the support here is stronger.
The 4-hourly Stochastic Oscillator is around 20, suggesting a rebound.
The resistance level is at 0.7015, followed by 0.7030 and 0.7050.
The support line is at 0.7000, followed by 0.6985 and 0.6970.
Today we will see the release of US durable goods orders and core durable goods (Fed), at 12:30 GMT. With better-than-expected readings, it will likely weigh on NZD/USD, and test supports. With weaker-than-expected readings, it will likely push NZD/USD up, and test resistances.
Three Fed presidents are scheduled to deliver speeches today, their hawkish/dovish comments will also likely affect the strength of the dollar.
The major focus for today is the vote on Trump’s healthcare bill proposal to repeal Obamacare. The vote was postponed from Thursday evening to today. This is Trump’s first bill proposal since taking office. However, there has been a severe disagreement within the Republican party.
If the bill fails to pass, markets would likely lose confidence in Trump’s administration and his other policies (such as tax-cuts and regulation reform) which will likely weigh on USD and US equities. In this situation, NZD/USD will likely further rally and test resistances.
Be aware that markets are likely to be volatile today.