NZD/USD: bulls remain on 0.72 handle, focus back on Central Banks

NZD/USD is currently consolidated in a slow start to the week while we await additional catalysts. 

NZD/USD is holding onto the 0.72 handle after a strong sell-off mid week last week while the focus is shifting back towards Central Bank mania with some of the market considering a pause from the Fed this year which is now weighing on the greenback within the sentiment that has started this week. 

Non voting member John Williams at the Fed was reported earlier as dovish suggesting that the Fed should consider raising the annual inflation rate target from 2% that could give the Fed more room to respond to a recession. Meanwhile, the RBNZ is tipped to continue with an easing bias with another potential rate cut on the cards next time around.

NZD/USD levels

Current price is 0.7222, with resistance ahead at 0.7226 (Daily High), 0.7229 (Yesterday's High), 0.7241 (Daily Classic R1), 0.7244 (Monthly High) and 0.7284 (Daily Classic R2). Next support to the downside can be found at 0.7214 (Hourly 100 SMA), 0.7213 (Daily Classic PP), 0.7210 (Daily Open), 0.7210 (Weekly High) and 0.7209 (Weekly Classic PP).  Looking at price patterns, we can see a Dark Cloud Cover 4-hour candlestick formation.