NZD/USD: Bulls defending 0.7190 region amid risk-aversion

The New Zealand dollar keeps the offered tone intact against its American counterpart in the European session, keeping NZD/USD restricted below 0.7220 region amid a classic risk-off market profile.

NZD/USD struggling to keep 0.72 handle

Currently, the NZD/USD pair drops -0.32% to 0.7205, having found solid support near 0.7190 region. The Kiwi ended its five-day winning streak and fell into the red zone this Thursday, largely driven by persistent risk-off sentiment amid falling oil and stock markets, which crushes risk appetite across the board and hence, weighs down on the higher-yielding currency NZD.

Moreover, a bout of profit-taking after the recent upsurge cannot be ruled out, as we head towards today’s crucial NZ GDT price index release and also ahead of Wednesday’s FOMC minutes.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7221 (Daily high), above which it could extend gains to 0.7241/50 (Jul 4 high/ psychological levels). To the downside immediate support might be located at 0.7181 (5-DMA) and from there to at 0.7128/11 (10 & 20-DMA).