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NZD/USD should we expect a sell-off now?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - NZD/USD is currently trading at 0.6620 with a high of 0.6647 and a low of 0.6533.

    NZD/USD was pushed higher yesterday and besides a small set back that was supported on the dip in Asia, the pair continued to make fresh highs to 0.6647 where supply was attracted and followed through in recent trade down to the support of the 20 SMA on the 30 min sticks.

    Fundamentally, staying with the US and the Fed, expectations are that the FOMC minutes could be a tad dovish and that should weigh on the greenback, support equities and risk-on currencies such as the bird. The Fed are not expected to hike rates this month or next based on the recent Nonfarm Payrolls miss that is yet to be proven whether this was a fluke or not, for it was a large miss. Fonterra reported more positive prices that have boosted the bird also in the past few auctions.

    NZD/USD potential reversal key area

    Technically, NZD/USD is now in overbought territory with RSI (14) at 76.88 having gained over 300 points in the last few weeks since 29th Sep rally. Bulls will be looking for profits and the 0.6480 region could be a strong area of support on a reversal where both the hourly 50 and 20 SMA have supported previously.
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