- NZD/USD: capped ahead of key resistance of the 21-D SMA and 0.70 the round psychological figure.
- NZD/USD: risk sours in late NY, Kiwi can’t find bullish traction.
NZD/USD is currently trading at 0.6937 following a bid from the 200-hr SMA at 0.6919, (0.6920 overnight lows), in a minor correction of the bearish slide from the highest levels since 15th May.
The Kiwi is on the verge of testing the bear’s commitments around the descending 21-D SMA up at 0.6986, although it has moved into a consolidation at this stage, unable to break up from beneath the weight of the market’s preference for the US dollar, (DXY range: 93.2910-93.7340). In NY, the risk was soured towards the end of the session, with US stocks dropping to near their lows of the day as uncertainty over trade policy and other geopolitical issues remained high.
0.70 level could be a hard nut to crack
“Perhaps it was news of EU-NZ FTA trade talks, the further thawing in the US-China trade spat, or just an extension of yesterday’s squeeze, but the NZD pushed up to resistance near 0.70. But moves were not sustained, as the 0.70 level will likely be a hard nut to crack. We expect consolidation here, but retain a downside medium-term bias,” analysts at ANZ argued who sighted that the NZ market will likely open little changed after a quiet session in US rates markets.
NZD/USD levels
Support comes in at 0.6920, 10-D SMA and 0.6850 below there. To the upside, 0.6950 and 0.6980 mark key levels of interest, (21-D SMA 0.6986). The next upside key target beyond there is located at 0.7080. The NZD/USD has taken out the 200-month moving average resistance at 0.6980. However, weekly technicals remain bearish and RSIs are biased to the downside. Below 0.6850, 0.6780 comes as next downside target meeting the lows of mid-Nov 2017.
Share
