NZD/USD tests 0.6920 key level ahead of FOMC’s minutes on Wednesday

• The FOMC’s minutes is likely the next market-mover for NZD/USD. It is scheduled for Wednesday at 18:00 GMT. 
• The NZD/USD is currently testing the key 0.6920 level which is a potentially strong support and the 50-period simple moving average on the 4-hour chart.

The Kiwi posted a high at 0.6974 in early Europe then retreated, under pressure for the most part of the day. The pair has established an intraday low at the 0.6920 a couple of hours after the London close and is currently trading at around 0.6927 down 0.27% this Tuesday. 

NZD is mainly correlated to AUD which is trading higher on the back of higher US equities and commodity prices such as gold and copper.

The US Dollar Index (DXY) is having a consolidative day but still trading at multi-week highs while the 10-year US Treasury yield is only slightly up for the day trading at around 3.069% at the time of writing.

Traders will closely watch the FOMC’s minutes on Wednesday at 18:00 GMT as it is likely the next event which will give USD-related pairs their next directional move. 

NZD/USD 4-hour chart 

The main trend is bearish but the kiwi is trading in a rising channel since mid-May and the market is now testing the 50-period simple moving average on the 4-hour chart which may provide support.
The 0.6920 was an important resistance level and is now being tested as support. Therefore immediate support is the 0.6920 level followed by the 0.6900 handle and the 0.6872 swing low. To the upside, bulls will likely meet resistance at the current high of the day at 0.6975, the 0.7000 handle followed by the 0.7053 swing high.