NZD/USD sub-0.73 as US Dollar is supported

• The NZD/USD is nearing a multi-month support at 0.72.
• The US Non-Farm Payroll (NFP) is the main macroeconomic news of the week on Friday.

The NZD/USD is trading at around 0.7223, down 0.37% on Easter Monday as the US Dollar Index is trading up on the day despite renewed fears about a trade war after China imposse tariffs on porks and fruits from the US.  

Later on Monday, Minneapolis Fed’s President Neel Kashkari is slated to speak at a Student Town Hall in Duluth, Minnesota at 22:00 GMT. Meanwhile, tier-two data form New -Zealand is coming up with the NZIER Business Confidence for the first quarter of the year also scheduled at 22:00 GMT.

The biggest market mover of the week is scheduled on Friday with the US Non-Farm Payroll (NFP).  

Earlier in the day, the US ISM Prices Paid saw a strong acceleration while the headline manufacturing PMI came below forecast. However, the Markit manufacturing PMI rose to a three-year high of 55.6 in March supporting the US Dollar.

NZD/USD daily chart

The NZD/USD is still consolidating in the wedge bull flag which started taking shape in early 2018. The bulls are using the 0.72 handle as main support while the 50-period simple moving average has now become dynamic resistance at 0.7290 forming a confluence zone with the 0.73 psychological level and swing high of last week. If the bulls break through it next resistance level is seen at 0.7350 swing high. The main support area remains the 0.72 level with the 200-period simple moving average at 0.7184. The next support level is seen at the 0.7153 cyclical low established on March 21.     

NZD/USD 1-hour chart

The NZD/USD is trading below the 50, 100 and 200-period simple moving averages on the 1-hour chart. Support is seen at the 0.72 handle discussed above followed by the 0.7153 swing low. Resistance is seen at 0.7240, high of Monday and home of the 100-period simple moving average on the 1-hour chart, followed by the 0.73 swing high.