NZD/USD downside still to play for in a fade

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6620 with a high of 0.6642 and a low of 0.6580.

    NZD/USD entered the shift as the strongest performer in a minor recovery on profit taking as we head towards the end of the week and into key risk with Nonfarm Payrolls around the corner. The birds mod Oct rally was capped while markets started to focus back on the interest rate differentials and divergences of Central Banks heading into year end and critical decision making time for the Fed.

    The signals for the RBNZ have not been encouraging, with a weak labour market and commodity prices continuing to drop as well as further negativity out of the Chinese economy weighing on the pacific region and EM's especially. This week may well be the prelude for the December FOMC and so far the data has been positive, Fed speak has been hawkish and all this accompanied by a what is expected to be a decent Nonfarm Payrolls report leaves the Dec meeting open for lift-off from the Fed, leaving the bird exposed to the downside.

    NZD/USD levels

    Technically, 0.6650 resistance is playing its roll on the bullish attempts on profit taking held up by the 55 SMA on the hourly chart of which guards 0.6705/20. While a bearish bias persists until a recovery onto the 0.67 handle is made, below the 200 SMA on the 4hr is at 0.6617, the bearish trend is likely to gather pace again for another attempt below 0.6600 ahead of a breakout to 0.6515 and the 55 DMA.
    For more information, read our latest forex news.

Share This Page

free forex signals