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NZD/USD catches bid tone, 0.6840 resistance tested

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - NZD/USD continues its relentless rise, off a double bottom printed at 0.67 on Oct 22nd, with the rate now up over half a cent from its NY close of 0.6780, last at 0.6835 day highs.

    Stops driving NZD pairs?

    According to Sean Lee, Founder at FXWW: "Looks like stops driving the NZD across the board. There was talk this mrng of AUD/NZD stops below 10600 and EUR/NZD selling is not abating at all."

    The New Zealand Dollar was the best performer on Thursday, following the strong hints by ECB President Mario Draghi to expand QE as soon as December. However, as ANZ notes, failure by G4 economies to normalize monetary policies may add pressure to the RBNZ to cut rates further in the near term, justified by the upward pressured in the Kiwi.

    NZD/USD key levels

    On the upside, the first resistance faced by the Kiwi is found at 0.6940 (Daily R1), followed by 0.6875 (ATR14 limit) and ahead of 0.68990/6900 (Daily S2 + psychological round number). On the downside, 0.6770 is the key point of control for bulls, as that is the level where both the daily and weekly pivot point intersect; below this level, 0.6745/50 is the next support, an area that aligns with the ATR 14 limit for today.
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