Home NZD/USD Price Analysis: Bears keep the reins below 0.6600 despite RBNZ-led buying
FXStreet News

NZD/USD Price Analysis: Bears keep the reins below 0.6600 despite RBNZ-led buying

  • NZD/USD prints mild gains following its bounce off 50% Fibonacci retracement of June-July upside.
  • MACD turns bearish for the first time in a week, falling channel portrays the sentiment weakness.
  • An upside break of 0.6650 will strengthen bulls’ run-up.
  • RBNZ, New Zealand’s Finance Minister Grant Robertson announced measures to combat the coronavirus (COVID-19) economic impact.

NZD/USD picks up the bids near 0.6570, up 0.16% on a day, during the early Thursday. The pair recently benefits from the efforts of Reserve Bank of New Zealand (RBNZ) and Finance Minister Robertson while extending pullback from 0.6544.

Read: RBNZ: Term for lending has been extended to five years from three years

Even so, MACD challenges the bulls and so does a falling channel formation established since July-end.

As a result, buyers may not respect the latest pullback as a strong signal for entries unless witnessing a clear break of the mentioned channel’s resistance, at 0.6650. However, an intermediate pullback to 0.6600 can’t be ruled out.

Should the NZD/USD prices cross 0.6650 mark, the previous month’s peak near 0.6715 will be in the spotlight.

On the flip side, 61.8% of Fibonacci retracement and the channel’s support, respectively around 0.6510 and 0.6500, could keep the bears away before diverting them to the late-June peak surrounding 0.6450.

NZD/USD four-hour chart

Trend: Bearish

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.