NZD/USD headed to end the week on a flat note

The NZD/USD pair once again defended 100-day SMA support on closing basis to gain traction and break through Thursday's high level to currently trade just shy of day's peak level of 0.6776.

In the past two weeks, the pair has shown resilience to decisively break through 100-day SMA support, which has led to a bout of short-covering at lower level. The pair has now moved back above 0.6750, but could this turn out to be a dead-cat bounce, providing bears with the opportunity to initiate fresh short positions at higher levels?

From technical perspective, the pair’s intra-week swing was larger than previous week’s range and the pair is virtually unchanged from previous week’s closing level, clearly indicating a state of indecision amongst traders. Hence, in order to get a clear directional view, the pair either needs to decisively break below 100-day SMA or conquer 50-day SMA resistance. Till that time the pair seems to oscillated within this broad trading range between 50-day and 100-day SMA region.

Technical levels to watch

From current levels, momentum above 0.6800 round figure mark has the potential to lift the pair towards the top end of the trading range resistance near 0.6820-30 region (50-day SMA).

Meanwhile, drop back below 0.6740 horizontal support might drag the pair back towards 100-day SMA strong support near 0.6720 region.