- NZD/USD has picked up a bid, possibly due to risk-on in the equities.
- The bias remains bearish with lower highs, lower lows setup on the weekly chart.
NZD/USD is currently trading at 0.6273, representing 0.24% gains on the day.
The uptick could be associated with the risk-on action in the equities. As of writing, the stocks in New Zealand are up 0.60%. The futures on the S&P 500 are also up close to 0.5% and Australia’s S&P/ASX 200 is adding 0.48%.
The stocks have likely picked up a bid on China’s Vice Agriculture Minister’s comments that last week’s canceled visit by a Chinese trade-delegation to US farm-states has nothing to do with trade talks.
The Kiwi may extend gains to the 50-hour moving average (MA) at 0.6290 if the risk assets remain bid.
Technical outlook, however, would remain bearish as long as the pair is trading below the 10-day MA, currently at 0.6346.
The pair fell by 1.88% last week – the biggest drop since the last week of July – and closed at the lowest level since September 2015, confirming a fresh lower low, lower high pattern on the weekly chart.
Hence, the path of least resistance is to the downside and the selling could gather traction once the daily low of 0.6260 is breached.
Weekly chart
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en da
Trend: Bearish
Technical levels
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