NZDUSD is trending higher on its hourly time frame, moving inside an ascending channel and testing the resistance. If it holds, a pullback to the support levels marked by the Fibonacci retracement tool could follow.

The 61.8% level is in line with the channel bottom around the .6835 mark and might be the line in the sand for a correction. A shallow pullback could find buyers at the 50% Fib that lines up with the 100 SMA or the 38.2% Fib near the mid-channel area of interest and .6900 mark.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. If so, NZDUSD could make its way back up to the swing high near the .7000 major psychological mark.

Stochastic is still heading lower to show that sellers have the upper hand, so price could follow suit. However, the oscillator is approaching the oversold region to signal exhaustion soon. Turning back up would mean that buyers are ready to take over.

There are no major reports due from New Zealand this week, leaving the Kiwi to take cues from overall market sentiment. Meanwhile, the dollar has plenty of US economic reports to contend with.

Among this is the US core PCE price index, which might show a slight dip in price pressures. However, stronger than expected results could stoke expectations of consecutive rate hikes from the FOMC in their upcoming meetings. Note that the CPI readings have been coming in stronger than expected recently.

The NFP release on Friday would likely impact USD direction as well, with analysts projecting a slowdown in hiring for March. Leading indicators due throughout the week would have some clues and likely impact USD movements, too.