NZD/USD bulls seek out the pivot closing bears gap

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6766 with a high of 0.6772 and a low of 0.6729.

    NZD/USD has been in recovery after a bearish gap was created on the back of comments over the weekend from NZ's finance minister, Bill English who explained that rates will remain low and may have to fall further and suggested that the RBNZ needs to do more to boost inflation.

    This has come after the RBNZ has left policy on hold, but are keeping the door wide open for further easing and looking for a weaker currency with analysts looking at a 0.60c target for Q1 2016. For the meantime, US data and commodity prices will drive the price and this week offers the key US jobs report expected to be in line with the FOMC's required band for lift-off in December.

    NZD/USD levels

    Technically, the market likes the price in a tight range around the 200 SMA on the hourly chart that is currently at the mid-point of the 0.67 handle within the vicinity of the pivot of 0.6754. The 200 DMA at 0.7006 weighs on the price, despite a break above the 55 DMA at the start of October.
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