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NZD/USD downside looking to play out?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6704 with a high of 0.6725 and a low of 0.6702 in the open in early Asia. NZD/USD post post RBNZ bulls have been damaged on the prices of oil continuing on the offer and risk-off as we head in towards the FOMC this week.

    The RBNZ indeed cut rates but the opposite trade, similar to the ECB shocker, was a result of the rhetoric from the Central Bank in a mixed delivery of their statement which was contradictory in the rates will remain firm while leaving the door open should there be an appropriate time to cut again.

    As we move into the FOMC, the outcome maybe that the Fed raise rates by 25bp's but, Yellen and remarks will be scrutinized as to the frequency and magnitude of further rate hikes, and any hint that we maybe neutral for some further time could be detrimental to the US dollar and support the bird going forward.

    NZD/USD levels

    Technically, the upside momentum has turned south on the 4hr chart and price now trades below the 20 SMA on the same time frame while RSI (14) heads towards 50. Downside risks through the 50 DMA at 0.6647 and the cluster of key MA's could be pivotal while the 100 DMA is located at 0.6549. The key upside target lies with the 200 DMA at 0.6880 and the October highs at 0.6904.
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