Can NZD Keeps its Gains Against USD? The New Zealand Dollar could be weakening on profit-taking and we can see a pullback into a support area at 0.6567, which is 61.8% Fibo retracement on the fall from 0.6790 to 0.6203.
But the pullback from 4.5-month high could be temporary, cause on the daily chart we may have a bullish crossover of the 50- and 100-day SMAs. Once its confirmed, this should attracted the buyers.
Additionally, NZD/USD printed a daily bullish engulfing candle yesterday, signaling the bullish momentum is not exausted yet. If the buyers pick up, the nearest bullish target is 0.6666 (78,6 Fibo level). In event we have a clear break there, this could extend the upside trend towards July 24 high at 0.6723.
And of course don't forget to keep a close eye on fresh developments surrounding the US-China trade talks. In case sides fail to reach a deal and the US ends up hiking tariffs on Chinese imports on Sunday, the trade-sensitive kiwi could start erasing this week's gains. Bellow 61.8% Fibo the next support is around 0.65 - 0.6475.
