NZD/USD is trading near the highs despite tepid risk sentiment
The kiwi is the best performing major currency on the session so far gaining ground following a beat on business confidence data earlier here. Risk sentiment has looked rather tepid over the past few hours and the slightly softer tones so far isn't doing much to "pull down" the kiwi on the day.
But given that risk may not give added backing to the kiwi, key technical levels may indicate that we have reached a cap for NZD/USD at the moment.
On the daily chart, there is resistance in the form of the 200-day MA (blue line) @ 0.6841 and that will be a key battleground over the next two sessions as buyers are looking to secure a close above while sellers are hoping to keep price below it to prevent the bias shifting towards being more bullish.
And looking at the near-term chart, there is topside trendline resistance around 0.6860 as well as the 200-hour MA (blue line) @ 0.6852 that is preventing a break higher in the kiwi at the moment.
I for one remain a bit skeptical on the pop higher in the kiwi considering the tepid tones in markets and as we approach the key technical levels here, the upside run may encounter some exhaustion for the day. Barring a significant rebound in risk, I reckon the pair may be unable to defy "gravity" for much longer in the sessions ahead.
