NZD/USD: sticking to session highs and testing key 0.7280 resistance

NZD/USD is better bid at the start of the week in the U.S. session in a minor recovery of the opening offer overnight in Asia as a follow through on the bearish close of last week.

US: New home sales fall 7.6% in August

Markets turned somewhat risk-off in the closing U.S. session last week after a turbulent time surrounding the FOMC and BoJ. The recovery has so far taken the bird back to test the 0.7280 resistance from lows of 0.7220 on the back of US home sales disappointing in respect of last month, albeit beating expectations 0.600m vs 0.609M actual and 0.659M previous.  Meanwhile, Fed's Lacker advocates for a rate hike in December and said the case should be strong. Next in focus this week will be US Q2 GDP estimates that are expected to be revised higher and durable goods. 

US: Q2 GDP is likely to be revised higher - BBH

NZD/USD levels

With spot trading at 0.7280, we can see next resistance ahead at 0.7280 (Weekly Classic PP), 0.7283 (Daily High), 0.7296 (Hourly 200 SMA), 0.7297 (Daily 20 SMA) and 0.7299 (Hourly 100 SMA). Support below can be found at 0.7262 (Daily Classic PP), 0.7251 (Hourly 20 EMA), 0.7245 (Daily Open), 0.7244 (Weekly Low) and 0.7224 (Yesterday's Low). Looking to candlestick patterns, we can see a Piercing Line formation on the 4-hour chart.