NZD/USD finds support at 0.7200 on softer USD

• The US Dollar loses almost all the gains made last Friday.

• The FOMC meeting on Wednesday is the event of the week for the USD. 

NZD/USD is currently trading at around 0.7227 up 0.13% on the day so far. Last Friday the US dollar was supported by better than anticipated data. However on Monday DXY is on the backfoot giving back almost all the gains made last Friday and is currently consolidating at around the 90.00 handle after hitting session’s highs at 90.34. 

The main event of the week for the USD is the FOMC meeting on Wednesday where Powell is widely expected to hike. However, the question is whether the FOMC will also lift its dot-plots. The week also sees Trump’s new steel and aluminum tariffs come into force and it will be interesting to see how other countries will respond to the US tariffs. Later in the week on Wednesday the RBNZ is set to release its interest rate decision, but analysts expect the bank to be on hold. 

NZD/USD daily chart

The NZD/USD has found intraday support at the 0.7200 figure which has been holding the price since January while the price is trading above its 100 and 200-period simple moving average. Resistance is seen at both 0.7250 and 0.7275 previous supply/demand zone. 

NZD/USD 15-minute chart

Intraday resistance is seen at 0.7234 R1 pivot and not far away 0.7239 R2 pivot with the 200-period SMA. Intraday support is seen at 0.7210 S2 pivot and 0.7200 figure and low of the day.