NZD/USD has recently bounced off the support area of 0.6850 after strong bearish trend in place. NZD has been quite weak in comparison to USD whereas this week positive economic reports helped NZD to gain over USD. Recently NZD Employment Change report was published with the increased value of 2.2% from the previous value of -0.1% which was expected to be at 0.8%, Unemployment Rate was decreased better than expected at 4.6% from the previous value of 4.8% which was expected to be at 4.7% and Labor Cost Index report was published with an increase as expected at 0.7% which previously was at 0.4%. On the other hand, today is going to be a very volatile day for USD as several high impact economic reports are going to be published today on USD. Today, USD Average Hourly Earnings report is going to be published which is expected to decrease to 0.2% from the previous value of 0.5%, Non-Farm Employment Change is expected to be positive at 312k from the previous negative value of -33k and Unemployment Rate is expected to be unchanged at 4.2%. Along with these reports, USD Trade Balance report is going to be published which is expected to show greater deficit at -43.3B from the previous figure of -42.4B, Final Services PMI report is expected to have slight decrease to 55.7 from the previous figure of 55.9, ISM Non-Manufacturing PMI is expected to decrease to 58.5 from the previous figure of 59.8, Factory Orders is expected to rise to 1.3% from the previous value of 1.2% and FOMC member Kashkari is going to speak about the nation's key interest rate decision and future monetary policies which are expected to be neutral in nature. To sum up, today is going to be a very volatile day for the pair whereas we might see certain spikes on each side before showing any impulsive directional move. As of the current situation, if USD reports today could not produce positive results then NZD is expected to gain further over USD in the coming days or else the bearish trend is expected to continue.

Now let us look at the technical view, the price is currently residing above the support area of 0.6850 which is expected to progress higher towards 0.7050 resistance area in the coming days. Along the way, the price might consolidate along the dynamic level of 20 EMA and if the dynamic level holds the price with a daily close below it then we will be looking forward to selling with a target towards 0.6650 support area. Currently, the trend is short-term bullish as the price residing above 0.6850 support area.