NZD/USD remains in a correction on daily sticks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD is currently consolidating the bid and has fallen back onto the 200 sma on the hourly chart that currently rides 10 below spot at 0.6464.

    The bird has recovered in a technical reversal and a score on the 0.65 handle earlier in the session leaves the door open to make a full recovery of the post RBNZ statement and subsequent sell-off.

    The RBNZ left rates on hold at 2.50% but the tone was decisively bearish on the global economy and dovish on rates. Calling for a lower bird has also left NZD/USD exposed to the downside. However, while weakness in the greenback persists and the bulls can eat for free.

    NZD/USD levels

    However, technically, while price remains below the 20 and 50 dma's, the bird still only looks like a correction on the daily sticks targeting 0.62 in the medium term. On a break to the downside, S1 comes at 0.6371 ahead of S2 at 0.6355.
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