NZD/USD: consolidates strong sell-off ahead of nonfarm payrolls

NZD/USD is currently in consolidation around the 0.7155 mark after a sell-off from 0.7280 that broke the handle and drifted stubbornly to the downside to reach recent lows of 0.7135.

NZD/USD is at a critical level in a strong bear trend that has been renewed this week on a resurgence of dollar bulls on the back of a better performing US economy ahead of what is expected to be a solid jobs report in the U.S. tomorrow in the nonfarm payrolls data. 

As analysts at Brown Brothers Harriman acknowledged, there have been key data, including the ADP report yesterday that was solid, data points that point to a strong report.  " Weekly jobless claims have fallen since August.  The BLS data found about 50k more people than average missed work in August due to the weather.  Most of these should be expected to have returned.  A job availability measure, embedded in a recent consumer confidence report, rose to its best level since 2008.  Reports indicate that the withholding tax (from paychecks) rose 6% in September."

NZD/USD levels

Current price is 0.7156, with resistance ahead at 0.7161 (Hourly 20 EMA), 0.7169 (Weekly Classic S2), 0.7173 (Daily Open), 0.7174 (Monthly Low) and 0.7174 (Weekly Low). Next support to the downside can be found at 0.7149 (Yesterday's Low), 0.7145 (Daily Classic S1), 0.7142 (Daily 100 SMA), 0.7136 (Daily Low) and 0.7118 (Weekly Classic S3).